European Union: Opened Commission in-depth investigation into Orange and MasMovil merger

On 3 April 2023, the European Commission announced that it was opening an in-depth investigation into the proposed Orange and MasMovil joint venture. The investigation will assess whether the transaction will reduce competition in the retail supply of mobile and fixed broadband services as well as of multiple-play bundles in Spain. The Commission noted that the acquisition would reduce the number of network operators in Spain, thereby eliminating an innovative and significant competitor, which could lead to higher prices and lower quality of telecom services for customers. In addition, the Commission noted that as a result of the transaction, Orange and MasMovil would have the ability and incentive to restrict access of virtual operators to wholesale mobile network and wholesale fixed network access services, reducing the ability of operators to compete and lead to higher prices and lower quality of services for end customers in Spain.