The European Commission unlawfully approved Hutchison’s acquisition of Orange in Austria by knowingly accepting ‘ineffective' commitments
In this first research note of 2015 we go back in time and examine in detail the European Commission’s approval of Hutchison’s acquisition of Orange in Austria in 2012 and the events that unfolded following Vice President Almunia’s July 2014 ‘mistake’ admission.
The Commission’s clearance of the Irish and German mergers in 2014 with similar Austrian-like ‘ineffective’ remedies will trigger a 4 to 3 consolidation wave in 2015. Beside Denmark, we expect 4 to 3 merger announcements in almost all the remaining 4 player mobile markets in Europe (UK, Spain, Italy, France and who knows even in Sweden and the Netherlands).
Given that merger conditions set by the Commission do not instantly (full impact typically 6 to 12 months) remedy the significant impediment of effective competition caused by the mergers it is crucial to look back, when all remedies are implemented, and determine if the significant impediment to effective competition was remedied after all in the effected market.
Premium research note (11 pages, pdf) »
List of all research reports and external articles
Featured research reports
Digital Fuel Monitor 7th
May 2017 (updated 22.05.2017)
The state of 4G pricing, mobile data usage, spectrum usage, network capacity utilization and fixed-to-mobile broadband substitution. After its comeback in 2016, in 2017 unlimited mobile data goes viral and spreads to 22 countries. And while in competitive markets such as France and Denmark consumers can buy 100 or unlimited gigabytes for less than €30, in tight mobile oligopoly markets such as Portugal, Greece and Hungary €30 hardly buys any gigabytes. Europe’s mobile data divide widens further: 200x more gigabytes for €30 in smartphone plans, 600x more gigabytes in mobile broadband plans, 200x difference in median gigabyte prices, 40x difference in mobile data usage per capita and spectrum usage.
The market is changing. Mobile data pricing and network economics metrics and research reports for industry professionals