Swisscom Gains Italian Approval for Vodafone Deal, Awaits Antitrust Decision

Swisscom has received an important approval from Italy’s communications regulator, AGCOM, for its €8 billion acquisition of Vodafone Italia, moving closer to finalizing the deal. The proposed acquisition, announced in March, aims to integrate Vodafone Italia into Swisscom’s Italian telecom subsidiary, Fastweb. This combination would establish Swisscom as a stronger competitor in Italy’s telecom market, with a potential 30% share in the fixed broadband sector.

According to Telecoms, AGCOM’s review primarily focused on the transaction’s impact on Italy’s competitive landscape for audiovisual media services. In a statement, Swisscom celebrated the regulator’s approval as “another important step” toward completing the transaction. However, a more critical challenge looms in the form of a comprehensive competition review by Italy’s antitrust authority, the Autorità Garante della Concorrenza e del Mercato (AGCM).

AGCM launched a Phase II investigation into the deal last month, citing potential concerns over its effects on competition, especially within the fixed broadband sector for residential customers. The regulator stated that the merger could create “a significant impediment to competition in the market for fixed communication services for residential users,” noting potential issues in specific competitive submarkets. AGCM’s review aims to assess the impact of merging two significant competitors in an already concentrated market, where the combined entity would trail incumbent player TIM but outpace other rivals, such as Wind Tre.

Read more: UK Backs Vodafone-Three Merger Pending 5G and Consumer Concessions

In response to these concerns, Swisscom has proposed various competition remedies. According to recent reports by Reuters, Swisscom has submitted concessions to Italian regulators that include allowing competitors access to Fastweb’s fiber network, enabling other providers to service corporate and public sector clients, and maintaining existing wholesale contracts. These remedies are intended to alleviate competition concerns and secure regulatory approval for the transaction.

The AGCM provided competitors until early November to share feedback on Swisscom’s proposed concessions. The antitrust body will now assess this feedback, along with other data, as it deliberates on the merger’s market impact. The investigation is expected to conclude by mid-December, aligning with Swisscom’s goal to complete the acquisition by the first quarter of 2024, assuming regulatory approval is granted.

Source: Telecoms