Europe: acquisition of Ziggo by UPC may be bad for competition – update

The European Commission wants to do further research into the acquisition of kabelaar Ziggo by competitor UPC. The European Commission is afraid that the acquisition of negative consequences for the competition for tv broadcasters and filmmakers, but also for consumers.

Because of the possible adverse effects on competition is the subject of further research, as has the European Commission Thursday afternoon announced. That further examination is carried out, says nothing about the probability that the acquisition is approved, the Commission underlines.

Europe fears especially that creators of audiovisual content and tv channels, a worse bargaining position. In addition, UPC behind pay-tv channels Film1 and Ziggo partly owner of the Dutch branch of HBO, which the UPC and Ziggo, together with a large share of the market for paid tv channels.

In addition, the acquisition also has negative consequences for consumers. Despite the fact that UPC and Ziggo do not directly compete – each region has only one cable provider – the commission believes that the providers together still indirectly compete. The acquisition would also be able to ensure that the companies investments to defer or price-fixing, with KPN, then the only other major player in the internet market.

The European Commission has until 18 september to make a decision. UPC does not respond to the survey; Ziggo was not reachable for comment.

UPC expected that the acquisition only in the autumn would be approved. UPC announced in January that its Us parent company, Liberty Global, Ziggo wants to take over. The new provider will be the name of Ziggo to wear, which in the Netherlands is greater than UPC.

Update, 18:39: In this piece was initially that the European Commission is not worried about the consequences of the takeover for consumers. That is incorrect: the Commission does indeed worry about it. The piece is updated accordingly.

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