Hungary’s Competition Office (GVH) on Monday said it denied approval of the acquisition of ViDaNet by Magyar Telekom.
GVH said the acquisition would give Magyar Telekom a monopoly on the landline telephone and cable television market in regions where ViDaNet operates. It rejected the request for approval of the merger in spite of promises Magyar Telekom made to remedy the situation.
Magyar Telekom acquired 100pc of voting rights in ViDaNet in December. When it applied for approval from GVH, Magyar Telekom said that if the competition authority found any problems with the merger, it would take steps to solve them.
In its decision announced on Monday, GVH said it established that Magyar Telekom was incapable of reducing the anti-competitive effects of the merger.
ViDaNet provides cable-based television, internet and voice communications in 20 Hungarian cities, including Gyor, Tata, Mosonmagyarovar, Kaposvar, Pecs and some parts of Budapest.