Regulators revolt against Telefónica and E-Plus merger

Europe’s biggest telecoms takeover in a decade has triggered a rare mass revolt of national competition watchdogs, who want Brussels to toughen up its conditions on Telefónica’s merger with KPN’s E-Plus.

At a recent meeting to review the European Commission proposal to approve the €8.8bn tie-up in Germany, just two of 12 national authorities present voted in favour of the planned competition remedies, according to two officials involved. The deal is one of the most important tests of Brussels’ resolve in recent years, as it will clarify the antitrust constraints on an industry hungry for mergers in national markets. It came amid vocal pressure from politicians, including Chancellor Angela Merkel of Germany, to ensure competition rules do not hamper investment in infrastructure.