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Wednesday, July 24, 2024

KPN granted approval to buy Youfone’s Dutch operations by ACM regulator

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In Short:

KPN has been given the green light to acquire Youfone’s Dutch operations by the competition regulator after an investigation showed it would not harm competition. KPN had announced the acquisition in June 2023 for around EUR 200 Million. The regulator initially had concerns about the merger possibly leading to higher prices, but ultimately found that there are enough other providers in the market. The deal is expected to boost KPN’s presence in the mobile and broadband market.

KPN Cleared to Acquire Youfone's Dutch Operations by ACM Regulator

The Dutch telecommunications company KPN has received approval from the competition regulator to acquire MVNO Youfone‘s Dutch operations. The approval comes after an extensive investigation, with the regulator announcing its decision on March 21, 2024. The acquisition was first announced by TelecomTalk in June 2023, with a reported value of approximately EUR 200 million.

Approval and Investigation

In September 2023, the regulator expressed concerns about the potential impact of the acquisition on competition in the budget or no-frills segment of the market for mobile telecommunication services. However, the regulator ultimately determined that the acquisition would not significantly reduce competition.

ACM highlighted that Youfone‘s use of KPN‘s network, as well as the option to use other networks, could strengthen its competitive position. The regulator concluded that consumers would continue to have a variety of options in the market post-acquisition.

Market Impact Assessment

The regulator’s market impact assessment indicated that there are numerous providers offering competitively priced mobile plans, alongside Youfone. This suggests that consumers will still have ample choices in the market.

Future Prospects

With over 540,000 subscribers in the Netherlands, Youfone plays a significant role in the market, and its acquisition by KPN is expected to strengthen KPN‘s position in the mobile and broadband sectors. KPN has assured that Youfone will continue to operate independently within the company to ensure continuity for its customers. The merger is set to be completed soon.

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