ACM: merger between cable companies UPC and Ziggo should be assessed in the Netherlands

The Netherlands Authority for Consumers and Markets (ACM) is convinced that the merger between cable companies UPC and Ziggo should be assessed in the Netherlands. ACM has therefore requested the European Commission to refer the merger application to ACM. The request for the merger assessment was filed with the European Commission because both Liberty Global, owner of UPC, and Ziggo are firms with high turnovers. The European Commission has the option to have the merger assessed by the member state in which the merger in question would take place, and on which the merger would have the largest impact. In this case, both are true for the Netherlands.

Chris Fonteijn, Chairman of the Board of ACM, reacts: ‘In my opinion, there are enough reasons to have the Netherlands assess this merger. We know best what is happening in the Netherlands. Within our organization, we have knowledge of the Dutch market. ACM assesses mergers, and regulates the Dutch telecommunication markets. In addition, this proposed  merger is a matter of national concern, as the cables run through Dutch territory, and those that are connected to these networks are solely Dutch households.’ Furthermore, ACM is currently conducting several investigations and studies such as the Telecommunication Market Analysis that directly concern these markets.

UPC and Ziggo are, by far, the largest providers of cable connections in the Netherlands. UPC and Ziggo have a combined turnover in the Netherlands of EUR 2.5 billion. With a cable connection, households are able to receive television, internet and telephony services. The merger is likely to have an appreciable effect on all of these markets. In the merger assessment, it will be examined whether the merger will have any negative effects on competition, and thus be harmful to consumers.

The European Commission has until early-May to decide which authority may assess the proposed merger between UPC and Ziggo.