The in-depth analysis by the European Union Competition authorities on the merger between the telecommunications operators Orange and MásMóvil has detected “considerable effects for competition” and “risk of increased prices for end consumers”. This is derived from the statement of objections or statement of charges that the body usually presents before its final conclusions and that it sent to the companies yesterday.
This is not their final decision, but Orange and MásMóvil now have the opportunity to respond to Brussels’ concerns, consult the file and request a hearing. In this process both have assured that they trust that their explanations can reverse the doubts of the regulators. “We continue to trust the outcome of the process and continue to work to convey to the European Commission the benefits of the operation for consumers and companies, both in terms of increased options for customers in innovative services and in the increase and acceleration of investments in 5G and fiber in Spain in a context of reduced investments in recent years and the resulting delay in the deployment of 5G with respect to the digital agenda of the European Union”, they indicated in statements.
This optimism is based on the fact that Brussels has put restrictions on retail activity but has left the wholesale market free. Even so, they will have to be used with zeal to defend their positions, since the final decision in this case goes beyond the Spanish market. If Brussels were to approve the demands of Orange and MásMóvil, it would mean accepting the creation of a mega-operator with a turnover of 18,000 million euros that would surpass Telefónica, but above all it would mean authorizing the Spanish market to go from having four large operators to just three .
This decision would mean setting a precedent, which Brussels has opposed for years, for the rest of the mergers in the sector that are in process in other countries of the Union, which could claim a similar treatment. From Spain, it is about defending a peculiar Spanish exception also in this sector. Even Telefónica, which would lose its leadership, advocates the merger of its competitors because it claims that the Spanish market is sufficiently competitive.
