Italian antitrust authority investigates impact of Swisscom-Vodafone deal on landline services

MILAN (Reuters) – Italy’s competition watchdog said on Monday the planned merger of the Italian units of Swisscom and Vodafone could pose a threat to competition in the country’s fixed-line communications market.

Last week, Italian antitrust watchdog AGCOM began an in-depth review of Swisscom’s €8 billion acquisition of Vodafone Italia. The company will be merged with Swisscom’s Italian subsidiary Fastweb, subject to regulatory approval.

The merger would create the second largest Italian fixed broadband operator after Telecom Italia (TIM), with a strong position in the valued business segment and in the fibre-optic communications market.

AGCOM said in its weekly newsletter published on Monday that the transaction could create a dominant player in the wholesale fixed-line telephony market, as well as in the retail market for residential, public administration and corporate customers.

The investigation will last 90 days.

The collaboration, announced in March, is expected to be finalized in the first quarter of next year.

(Reporting by Elvira Pollina, editing by Gavin Jones)