Belgian Competition Authority Imposes Standstill and Hold-Separate Order on Proximus thus Applying Article 102, TFEU to Non-Notifiable Acquisition
- 23/06/2023
- News
The Belgian Competition Authority (BCA) continued its quixotic quest to stop telecommunications operator Proximus from acquiring the assets of near-bankrupt broadband communications service provider EDPnet. Its competition college issued a standstill and hold-separate order requiring Proximus to observe a series of interim measures over a period of 15 months, subject to extension (see, attached press release).
Proximus will have to (i) maintain the viability and ability to compete of EDPnet; (ii) keep its activities and those of EDPnet entirely separate; and (iii) create a Chinese wall that shields the confidential information of EDPnet from access by Proximus. The measures came at the request of the BCA’s chief prosecutor (see, Van Bael & Bellis Life Sciences News and Insights, 21 April 2023) and are based on a prima facie finding that Proximus abused its dominant position by acquiring EDPnet. Their application will be monitored by an independent trustee.
The transaction did not meet the thresholds for the application of Belgian or EU merger control rules, prompting the chief prosecutor to seek the application of Article 102, TFEU and Article IV.2, Code of Economic Law which prohibit the abuse of a dominant position on the relevant market. The Court of Justice of the European Union had earlier confirmed this possibility to exist in its Towercast judgment of 16 March 2023 (see, Van Bael & Bellis Life Sciences News and Insights, 23 March 2023).
The BCA will now pursue its case against Proximus on the merits.
