EU: Almunia wary of telcos’ push for competition law changes

Some of the largest telecommunications companies in the EU are urging reform of competition policy to allow for a more simplified merger process, but reports say European Commissioner Joaquin Almunia is wary of those telcos’ growing market power.

Deutsche Telekom, Vodafone, Telecom Italia, Orange and others sent a letter to EU telecommunications chief Neelie Kroes to overhaul rules related to telco mergers and spectrum sales, say reports.

But Commissioner Almunia resisted the companies’ urges at a speech held in South Africa, where he remarked that “allowing fewer, larger players in individual EU countries would just reinforce market power.”

But telcos claim that more lenient mergers in the industry are crucial if the EU wants to successfully develop a single telecom market. That view was pushed in the letter sent to Kroes, say reports, and called for changes to the current “outdated and unnecessary layers of regulation.”

The remarks come as EU regulators weigh whether to allow Hutchison Whampoa to buy O2 Ireland, owned y Telefonica, in a deal that would reduce the number of wireless operators in the nation. That deal is expected to reach a decision in May.

Full Content: Irish Times and Mobile World Live

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