A1 Bulgaria sees threat from Vivacom's cleared buy of TV, Internet firms

"We believe that the series of takeovers of economically and infrastructurally strong operators allows Vivacom to acquire more than 60% of the TV programme distribution market and nearly 40% of the Internet market, which is not in the interest of market competition and society," A1 Bulgaria, a subsidiary of Austrian telecommunications group A1, said in a press release.

Bulgaria's antitrust regulator on Friday said it authorised the acquisition by Vivacom, part of Southeast Europe-focused media and telecommunications company United Group, of internet and television provider Telnet and subsidiaries Telnet Security and STV, as well as the takeover of several regional providers -- Networkx-Bulgaria, TVN Distribution Bulgaria, Telco Infrastructures and Online Direct.

Following an in-depth probe opened last year, the Commission on Protection of Competition (CPC) rejected concerns expressed by Vivacom competitors over the potential deals, pointing to the continued presence on the market of participants with market shares similar to or higher than those of Vivacom. There are three main competitors, including Vivacom, operating on the relevant national and local markets with the ability to exercise mutual control given the specific transparency of services offered on those markets, the CPC noted.

However, A1 Bulgaria argued that the planned acquisition of the local companies by Vivacom would present a particular concern in light of the agreed acquisition of pay-TV and broadband services provider Bulsatcom by Sofia-based investment company Viva Corporate Bulgaria. The CPC decided in December to look into the acquisition of Bulsatcom by Viva Corporate after being alerted by local telecoms operators Yettel Bulgaria and A1 Bulgaria. Their concern expressed at the time was that the acquisition was financed through a loan from United Group, the owner of Vivacom.

"We hope that our strong position will alert the competent regulatory authorities at national and European level before adverse consequences arise for the competitive environment," A1 Bulgaria concluded.

Vivacom, previously known as Bulgarian Telecommunications Company (BTC), agreed to acquire 100% of Telnet and its subsidiaries in 2021. In the same year, the CPC initially cleared the deals for Networks-Bulgaria, TVN Distribution Bulgaria, Telco Infrastructures and Online Direct but the transactions were referred to court and became subject of an in-depth probe after objections by Vivacom's rivals.