Belgian Competition And Telecoms Authorities Disagree Over Acquisition Of Mobile Vikings By Proximus

• Published date: 19 July 2021
• Subject Matter: Anti-trust/Competition Law, Media, Telecoms, IT, Entertainment, Antitrust, EU Competition , Mobile & Cable Communications
• Law Firm: Bird & Bird
• Author: Mr Hein Hobbelen and Baptist Vleeshouwers

In February 2021, Proximus, Belgium's incumbent telecom provider, started prenotification talks with the Belgian Competition Authority (BCA) with a view to taking over Mobile Vikings, a mobile virtual network operator (MVNO), which previously formed part of the DPG group. As part of its analysis, the BCA had requested the telecoms regulator, the Belgian Institute for Postal and Telecom Services (BIPT) for its opinion on the transaction. The BIPT later also intervened as an interested third party and participated in an oral hearing.

The BIPT argued that the BCA should block the concentration. Most importantly, the BIPT posited that Mobile Vikings was a maverick and a close competitor of Proximus on the highly concentrated retail market for mobile telephony services. The BIPT argued that a number of users had in the past made the switch from Proximus to Mobile Vikings, showing the competitive pressure which the latter exerts on larger players. In that regard, it in particular pointed to Mobile Viking's aggressive pricing strategy. The BIPT therefore alleged that the transaction would lead to "a reduction, if not neutralisation, of competitive pressure" and "would have a potentially negative impact on prices".

The BCA carried out a detailed...