EU approval of Vodafone/Unitymedia cable deal faces legal action

[Andrushenka]

German network operators Deutsche Telekom, Tele Columbus and NetCologne are taking legal action against the European Commission’s decision to approve the controversial takeover of Liberty Global’s German cable company Unitymedia by Vodafone.

Three so-called actions for annulment have been filed at the Court of Justice of the European Union against the approval, a court spokesman confirmed to German industry newsletter Medienkorrespondenz.

The plaintiffs had previously criticised that the “re-monopolisation of the cable market” would weaken competition.

On February 4, 2020, the deadline expired for taking legal action against the European competition authority’s approval of the cable deal at the Court of Justice of the European Union.

[Andrushenka]

Vodafone does not expect the lawsuits filed by Deutsche Telekom, Tele Columbus and NetCologne against the approval of the takeover of Unitymedia by the European Commission to succeed.

“In a 15-month procedure, the EU Commission has thoroughly examined the takeover of Unitymedia by Vodafone by means of market tests and extensive surveys, among other things,” a Vodafone spokesman told Broadband TV News. “The merged company will fuel competition and deliver better, faster and more innovative broadband and TV services to consumers and businesses.”

“In our view, the approval is good for consumers, the economy and competition in Germany,” the spokesperson said. “We are therefore relaxed about the legal action.” The spokesman did not address the question of whether and to what extent Vodafone is prepared for the case that the merger with Unitymedia has to be reversed.

Deutsche Telekom, Tele Columbus and NetCologne recently filed three so-called actions for annulment at the Court of Justice of the European Union against the approval of the controversial cable deal by the European Commission. The three competitors criticise that the “re-monopolisation of the cable market” would weaken competition.