NMa: KPN calls off take-over of CAIW

Dutch telecom company KPN and CIF, owner of Dutch cable company CAIW, have withdrawn their license application for the acquisition of CAIW by KPN. Both companies have informed the Netherlands Competition Authority (NMa) of their decision. KPN and CIF came to this decision after the NMa had indicated that it, even after an additional investigation, continued to have concerns about the strong position KPN would secure in CAIW’s catchment area. The NMa’s concerns primarily related to reduced consumer choices for television services, internet access and landline telephony services. Now that KPN and CIF have withdrawn their license application, the NMa is no longer planning any follow-up investigations.

When reviewing mergers and acquisitions, the NMa assesses whether effective competition in the market is significantly impeded, particularly when a dominant position is created or strengthened. Such a dominant position can have negative effects on the price, quality and range of the products or services offered on the market. Were that to happen, the NMa could attach conditions to the planned concentration or block it altogether. It is prohibited to go through with a concentration before the NMa has ruled on it.