The BCA obliges Proximus to safeguard EDPnet’s autonomy through a series of measures. This comes after a preliminary analysis showing that Proximus may be abusing its competitive position.

The Belgian competition authority (BCA) has doubts about the planned takeover of EDPnet by Proximus. At the end of March, Proximus announced that it wanted to incorporate EDPnet as an independent entity through a takeover worth EUR 20.5 million. The BCA promptly launched an investigation on March 21 and has now determined that the takeover could, on the face of it, lead to an abuse of power over Proximus’ competitive position.

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The investigation is ongoing, but the signs are serious enough for the BMA to impose interim measures. These must prevent the takeover from becoming irreversible. Proximus must:

• maintaining the viability and competitiveness of EDPnet;
• Keep Proximus and EDPnet activities separate and under the supervision of an administrator appointed by Proximus from EDPnet staff.
• ensure that Proximus does not receive any confidential information related to EDPnet.

The measures have been in force for at least fifteen months until the end of the investigation and can be extended. An independent party will monitor compliance.

Takeover after problems

When the takeover was announced, Proximus already promised that EDPnet would actually remain an independent entity within the group. The BMA does not appear to be impressed by this promise and, after an initial analysis, sees the danger of Proximus becoming too dominant in the telecommunications market.

EDPnet is the only independent operator using Proximus’ landline network, but the company ran into trouble last year. After a court reorganization, the court approved a takeover bid by Proximus over one by Orange and Citymesh.

Proximus says in De Tijd that it regrets the decision and believes that it is indeed acting in accordance with the competition rules. In any case, the BMA has not yet made a final decision.