The CPC opens in-depth investigation into “BTC” EAD’s proposed acquisition of Telnet OOD

11 10 2022

By Decision No744/06.10.2022, the Commission on Protection of Competition (CPC, the Commission) has opened an in-depth investigation to assess the proposed acquisition of sole control over "Telnet" OOD by "Bulgarian Telecommunications Company" EAD (BTC).

Within the proceedings initiated under case No. KZK/21/2022, the Commission established that the concentration leads to both vertical and horizontal effects given the respective markets in which the participants in the transaction operate.

Based on the information collected during the investigation regarding the market position of the participants in the concentration and their competitors, the Commission came to the conclusion that, after the implementation of the planned transaction, the acquiring company BTC will significantly strengthen its market influence on a national and especially on a local level in the regions of Veliko Tarnovo, Gabrovo and Ruse. The relevant markets that will be significantly affected by the transaction are those of retail fixed internet access, wholesale reserved capacity and the wholesale and retail leased line segments.

Due to the above considerations, as well as the statements and concerns received from the sector regulator KRS and from third parties, the Commission considers that it is necessary, within the in-depth investigation, to collect timely data and analyze the supply and demand market structure, the volume of the relevant affected markets, resp. market positions of the parties to the transaction and their competitors at national and local level, in the territory where the acquired company is active.

In order to assess the final competitive effect of the transaction and how much it would benefit/harm the end customer (subscriber), the CPC will investigate whether there is a sufficient choice of alternative providers (local/national) of the services offered by the participants in the concentration, their mobility, attitude and preferences, price conditions, as well as other circumstances relevant to this case.

Pursuant to Art. 83, para. 2 of the CPC, within a 30-day period from the publication of Decision No744/06.10.22 for the initiation of an in-depth investigation, any interested third party may submit to the CPC information or observations at to the effect of the concentration on  competition in the relevant markets.

The full text of Decision No744/06.10.2022 is available in the public electronic register of the CPC at: https://reg.cpc.bg/.

News