Norwegian Competition Authority: Telenor’s acquisition of GlobalConnect needs further examination

There may be a risk that the competition in the market for broadband services will deteriorate if Telenor is allowed to acquire GlobalConnect’s consumer business in Norway. The Norwegian Competition Authority therefore needs to take a closer look at the acquisition.

Today, the Norwegian Competition Authority has notified the companies that the authority needs to further evaluate the acquisition. Both Telenor and GlobalConnect offer broadband services to residential customers and currently compete to deliver these services in several parts of the country.

— Broadband is a fundamental service for everyone. Stable and affordable access to broadband is essential for everyday life, schoolwork, home office, and various digital services. If competition is weakened, it may lead to higher prices and fewer choices for consumers, says Eva Nysæther, Project Manager at the Norwegian Competition Authority.

The Norwegian Competition Authority will also examine whether the acquisition could make it more difficult for other broadband providers to gain access to Telenor’s infrastructure, and whether the acquisition would have negative effects on competition for TV services for customers.

To assess the competitive effects of the transaction, the Norwegian Competition Authority has collected and analyzed information from Telenor and GlobalConnect, as well as from other providers of broadband and TV services to customers in Norway, and from the Norwegian Communications Authority (Nkom).

— It is our preliminary assessment that the acquisition may have negative consequences for broadband customers in Norway. Going forward, the Norwegian Competition Authority will conduct further and thorough assessments to determine whether the acquisition should be approved or not, says Kristjan Ryste, Acting Deputy Director in the Department of Finance and Communication at the Norwegian Competition Authority.