ACM blocks acquisition of Delta’s fiber-optic networks by KPN’s joint venture

The Netherlands Authority for Consumers and Markets (ACM) has blocked the acquisition of parts of Delta Fiber Nederland’s (Delta) fiber-optic networks by Glaspoort. Glaspoort is a joint venture of Dutch telecom operator KPN and Dutch pension administrator APG. This acquisition reduces competition between fixed telecom networks in different regions of the Netherlands. As a result, consumers and businesses may, in the future, face higher prices for broadband and reduced quality of service.

Martijn Snoep, Chairman of the Board of ACM, adds: “Competition between telecommunication networks ensures that consumers and businesses benefit from more-competitive prices. As a result of this acquisition, the competitive pressure on KPN would decrease, and prices would likely increase. We find this an undesirable situation.”

Consequences of the acquisition: from three networks back to two competing networks

The acquisition concerns a part of the fiber-optic network owned by Delta in different municipalities in the Netherlands, covering a total of approximately 200,000 households. For these households, only two competing fixed telecom networks would remain in the relevant areas after the acquisition, which are KPN’s and VodafoneZiggo’s. Moreover, telecom operators without fixed telecommunication networks of their own, such as Odido and Budget, would have no choice at all, following the acquisition. They would become entirely dependent on access to KPN’s network, because VodafoneZiggo does not offer access to other telecom providers.

Traditionally, households in the Netherlands could only choose between the networks of KPN and VodafoneZiggo. Depending on the area, KPN provides telecom services over its fiber-optic or copper networks, while VodafoneZiggo uses networks that use coax (‘the cable’) for the ‘last mile’. KPN is currently replacing all of its copper networks with fiber-optic. Since 2021, independent market participants have been building their own fiber-optic networks throughout the Netherlands. Delta is the largest competitor among these market participants, and now reaches approximately one in five Dutch households. Delta has opened its network to other telecom providers, resulting in a reduction of dependence on KPN from other telecom providers. If these types of independent fiber-optic networks partially or completely disappear as a result of acquisitions by KPN, competition will be permanently reduced as no new network providers are expected to enter the market anymore.

Preventing higher prices for consumers and businesses

At the national level, too, Delta is an important competitor of KPN’s. If Delta as an independent network owner were to partially leave, competition between fiber-optic providers would also decrease at the national level. KPN already owns by far the most fiber-optic networks in the Netherlands. By also acquiring parts of Delta’s fiber-optic networks, KPN would strengthen its already existing dominant position. ACM therefore expects that, as a result of the acquisition, all consumers and businesses (telecom providers without networks of their own) would face higher rates for broadband, less choice, and reduced quality of service. ACM wishes to prevent these kinds of negative consequences, especially given the fact that telecommunication is a sector of great importance to society.

KPN is able to offer fiber-optic services, even without this acquisition

In the regions affected by the acquisition, KPN currently still offers telecommunications services over a copper network. The fiber-optic networks owned by Delta and most other independent providers are accessible for various telecom providers, including KPN itself. KPN is therefore able to offer fiber-optic services over Delta's network in the affected regions, even without this acquisition. However, KPN might also decide to build its own fiber-optic networks in those regions as a replacement for its copper networks.

ACM explored possible solutions

On the basis of proposals submitted by KPN and Glaspoort, ACM examined whether conditions or adjustments to the acquisition could solve the anticompetitive concerns. The proposals that were put forward could not. ACM has therefore decided to block the acquisition of the fiber-optic networks involved by Glaspoort.

If the companies involved disagree with ACM’s decision, they have the opportunity to file an appeal against the decision.

ACM’s concentration control: mergers, acquisitions, and joint ventures

With any merger, acquisition, or joint venture, there is a question of whether sufficient competition will remain. Competition ensures that products are of high quality, and that they are offered on the market at competitive prices. Competition also promotes innovation. That is why ACM decides in advance whether or not companies are allowed to join forces. ACM assesses whether the markets involved will continue to work well for people and businesses, now and in the future.

See also

• 09-06-2026 No license for the acquisition of parts of DELTA Fiber's fiber-optic networks by Glaspoort (final notification) (in Dutch)
• 31-10-2024 ACM: further investigation needed into acquisition of Delta’s fiber-optic networks by KPN’s joint venture

More on this topic

• 28-11-2024 Concentration decision: further investigation needed into acquisition of parts of DELTA's fiber-optic networks by KPN's joint venture (in Dutch)
• 04-06-2024 Glaspoort wishes to acquire parts of DELTA Fiber's fiber-optic networks (concentration notification) (in Dutch)