EU says Vodafone, Liberty Global deal may hurt competition

By Foo Yun Chee

BRUSSELS (Reuters) - Vodafone's $21.8 billion purchase of Liberty Global's assets in Germany and east Europe may hit competition in Germany and the Czech Republic, EU antitrust regulators said on Tuesday, as they opened a full-scale probe into the deal.

The deal, which includes Liberty Global assets in the Czech Republic, Hungary and Romania, expands Vodafone's reach as a provider of broadband, cable and mobile services in Europe, the company said

The deal between the world's second-largest mobile operator and U.S. cable pioneer John Malone's Liberty would enable Vodafone to compete more effectively with Deutsche Telekom in the German rival's home market.

The European Commission said it was concerned some rivals might be shut out of the Czech market where Vodafone offers mainly mobile telephony services and Liberty Global offers fixed telecoms services.

In Germany, the deal might reduce competition in the retail fixed telecoms markets and retail TV markets, curb investments in next-generation networks and give the merged firm more power as a TV broadcaster, the EU competition enforcer said.

It saw no issues in Romania and Hungary.

It will decide whether to clear the deal by May 2. The deadline can be extended if Vodafone offers concessions.

Reuters reported on Nov. 30 that the EU competition enforcer was set to launch a full-scale probe into the deal.

Vodafone said it still expected EU approval by mid-2019.

(Reporting by Foo Yun Chee; Editing by Gabriela Baczynska and Edmund Blair)