ACM clears acquisition of Vodafone Thuis by T-Mobile

Telecom provider T-Mobile is allowed to acquire the fixed-telecom division of Vodafone Netherlands. Vodafone has branded this division ‘Vodafone Thuis,’ which offers services for fixed telephony, TV, and internet. The Netherlands Authority for Consumers and Markets (ACM) has cleared this acquisition. The sale of Vodafone Netherlands’ fixed-telecom services was a strict condition imposed by the European Commission on the merger between Vodafone and cable company Ziggo.

The way has been paved for the merger of Ziggo and Vodafone Netherlands

In early-2016, Ziggo and Vodafone Netherlands announced their intentions to merge. In August, the European Commission gave the green light to this merger on one strict condition: Vodafone had to sell its fixed-telecom services in the Netherlands. Vodafone has now found a buyer for these services: T-Mobile. On December 9, the European Commission approved of T-Mobile as the buyer. Now that ACM has cleared this sale, the way is paved for an actual merger between Ziggo and Vodafone Netherlands.

ACM’s role

ACM has investigated whether the acquisition of Vodafone Thuis by T-Mobile would harm the Dutch telecom market. ACM had been closely involved in the merger investigation that was previously conducted by the European Commission, and was therefore able to clear this acquisition after a short investigation.

Serious challenger

This acquisition will change the Dutch telecom market. Henk Don, Member of the Board of ACM, explains: “We expect that T-Mobile will evolve into a strong competitor in the telecom market. T-Mobile thus has the potential of becoming a serious challenger to parties such as KPN and Ziggo-Vodafone. The acquisition of Vodafone Thuis will enable T-Mobile to start offering plans for fixed services and mobile services. This will result in new services and competitive prices, ultimately benefiting customers.”

What is next?

Now that the way is paved for a merger between Ziggo and Vodafone, what will change in the competitive landscape in the Dutch telecom market? In order to answer that question, ACM will carry out a new market analysis. The current market analysis was the basis for the regulatory regime of access to KPN’s network for the period of 2016-2018. The new market analysis may result in new rules in order to realize lasting healthy competition in the telecom market.