de flag go to the original language article
This article has been translated by Artificial Intelligence (AI). The news agency is not responsible for the content of the translated article. The original was published by APA.

EU Competition Authorities Against Telecom Market After US Model

by AI | 22.Apr 2025 | Europe in brief AI

According to the EU Commission’s proposal, there should be an increase in mergers in the telecommunications sector – with the aim of creating “European champions.” The competition authorities from six member states, including Austria, are now opposing the plans.

"Draghi Report has many good ideas, but the telecommunications sector is apparently not his strength," said a regulator from Austria. Photo: APA/ZB/Patrick Pleul

Vienna/Brussels – Six European competition authorities oppose American conditions in the telecommunications sector. The European approach of proactive regulation with subsequent adjustment promotes competition, while “ex post” regulation leads to concentration with higher prices, said the Federal Competition Authority (BWB) and the Broadcasting and Telecommunications Regulatory Authority (RTR) on Tuesday regarding the current political discussion in Austria.

But the competition authorities of Belgium, Ireland, the Czech Republic, Portugal, and the Netherlands also point to the importance of competition in the telecommunications sector, which is being questioned by the European Commission. This enables innovation, investment, affordable prices, and choice for consumers.

More expensive contracts for US consumers

“The often-made statement that there are 170 telecom providers in Europe and only three in the USA is simply false. This narrative is still brought up repeatedly,” said Klaus Steinmaurer, managing director of the RTR telecommunications and postal division. “What is true is that competition in the USA is overall less intense, and consumers especially feel that.” Domestic consolidation would render all regulatory successes of the last 20 years absurd.

Ambitious goals

The debate was triggered by the “Competitiveness Compass” of the European Commission. It contains the visions for Europe presented in the reports by Enrico Letta and Mario Draghi. The Commission formulated ambitious goals for growth, resilience, and the technological sovereignty of Europe based on the reports of the former Italian Prime Minister and the former ECB President. In this context, competition was portrayed as a brake on growth. Corresponding regulations would prevent consolidation in the telecom industry – the formation of “European champions,” according to the argument of proponents of lower antitrust hurdles.

“The Draghi Report has many good ideas, but the telecommunications sector is apparently not its strength,” Steinmaurer noted. (22.04.2025)