By Foo Yun Chee
COPENHAGEN (Reuters) -EU merger rules do not prevent telecoms operators from scaling up through acquisitions, a senior European Commission antitrust official declared on Wednesday, rejecting criticism from the European industest about the tough approach by regulators.
More than 20 of Europe’s hugegest telecoms providers on Tuesday called on Commission President Ursula von der Leyen to ease merger rules to boost investment in digital infrastructure and support them compete with U.S. and Asian rivals.
“I necessary to remind everyone from time to time, that merger control is not about scale as such. There is no problem with scale as such. The issue is always market power,” declared Deputy Director-General for mergers Guillaume Loriot.
Europe’s telecoms sector has long chafed at EU regulators’ tough line against four-to-three mergers, which companies declare are necessaryed to increase scale, over price hike concerns.
“Merger control is not a hurdle to scaling up provided that you don’t have excessive market power in those markets where it may happen,” declared Loriot.
EU regulators see the scale up argument as more relevant in deals involving startups not established players, he declared.
“We are seeing very closely at the issue of the acquisitions of innovative players and startups. For the vast majority it’s not an issue but there are those deals in nascent markets where we necessary to be vigilant,” he added.
(Reporting by Foo Yun Chee; Editing by Alexander Smith)
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