Merger of PPF Group and Nordic Telecom May Take Place Subject to Commitments
PPF Group is an international financial and investment group which focuses in the Czech Republic mainly on banking, consumer finance, telecommunications, transport systems, media, biotechnology, e-commerce, distribution and sales of consumer electronics, garden and household appliances, real estate and engineering. PPF Group operates in the telecommunications services sector in the Czech Republic through O2 Czech Republic a.s. and CETIN a.s.
The acquired company Nordic Telecom Regional is active in the provision of telecommunications services in the Czech Republic, in particular retail internet access services, IPTV television services, mobile telecommunications services, fixed telephone and data services, web hosting services, IP telephony and other ICT services.
As part of the merger investigation in the first phase of the administrative proceedings, the Office preliminarily found that there was a possibility of serious competition concerns in the market for retail fixed internet access in a total of 243 cities and municipalities where the merging parties' activities overlap and where the merger could result in a reduction in supply to consumers.
In response to the Office's findings, PPF Group offered commitments to maintain its existing wholesale offer or to create a new wholesale offer based on the existing wholesale offer for a period of five years from the date of the decision in the above-mentioned locations, allowing the provision of a wholesale fixed internet access service with handover at a central location. PPF Group has also committed to offer these wholesale services at a price that is economically justified at a reasonable cost and profit and to provide open and non-discriminatory access to such wholesale offer for all interested parties. In addition, PPF Group shall invest a minimum of CZK 240 million over the next five years in the development of more advanced technology in its network, in addition to PPF Group's investment commitment, subject to which the Office allowed PPF Group to acquire control over Nej.cz s.r.o. last year.
The Office assessed the proposed commitments as sufficient to eliminate serious competition concerns in the market for retail fixed internet access in the Czech Republic and cleared the merger subject to the commitments.
Press Unit of the Office
24/148 - S0569/2024
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