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Germany's Unitymedia, others face complaint over merger settlement

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Germany's Unitymedia, others face complaint over merger settlement

German cable operators association FRK has filed a complaintagainst Unitymedia, and two other operatorsover a settlement that cleared the way for the Unitymedia-Kabel BW , Broadband TV News reported April28.

In 2015, Unitymedia's parent Liberty Global plc reportedly agreed on paying up to €300 million to Deutsche Telekom AG and NetCologne, in exchange for the telcoswithdrawing their complaints regarding the merger. The Federal Cartel Office, orBundeskartellamt, agreed to the withdrawal.

However, in its complaint with the Bundeskartellamt, the FRKargued that the settlement constitutes an illegal cartel agreement. It further arguedthat the Unitymedia-Kabel BW deal will hinder competition in the German cable andbroadband markets.

The FRK now wants the regulator to block the settlement and cancelthe Unitymedia-Kabel BW merger, according to the report.