Sunday 26 February 2012

TELECOMS MERGER REFERRED TO GERMAN COMPETITION AUTHORITY.

The European Commission has referred the assessment of the proposed acquisition of Kabel Baden-Wurttemberg (KBW) by Liberty Global Inc. (LGI) to the German competition authority (Bundeskartellamt) at the latter request. The Commission ruled, on 17 June, that the proposed transaction may significantly affect competition in the market for the provision of free-TV services to housing associations, where contracts with tenants are negotiated collectively, a big market in Germany. KBW is a regional cable network operator in Germany providing TV, broadband internet and voice telephony services to customers in the German federal state of Baden-Wurttemberg. LGI is an international cable operator. It owns and operates cable networks offering TV, broadband internet and voice telephony services in 11 countries across Europe. One such cable network is Unitymedia, which is the second largest cable operator in the country and operates cable networks in the German federal states of Hessen and Nordrhein-Westfalen.

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