• UPC Polska has withdrawn the application for the takeover of Multimedia Polska.
• Earlier on, the UOKiK has voiced its doubts as to the contemplated concentration scheme, indicating that the transaction in question would lead to competition becoming restricted in 11 cities in total.
• There was a risk that residents of those cities would pay more for Internet access and cable TV than they did before the transaction.

The participants of the concentration scheme are companies which provide a variety of services, including cable TV and Internet access. The contemplated transaction was to involve the acquisition of the entirety of shares in Multimedia Polska by UPC Polska.

The second phase of the proceedings has been initiated due to the fact that a market survey needed to be performed. It has proved necessary, among others, to estimate the market shares of both UPC Polska and Multimedia Polska as well as to determine the area in which both companies remain direct competitors. The Competition Authority distributed its questionnaires among approximately 100 businesses which provide their customers with television and Internet access.

The study showed that the concentration may have the effect of restricting competition, which led the Competition Authority to present its objections to UPC Polska. In response, the company provided the Competition Authority with additional data and explanatory notes. It has also presented several proposals for changes to the transaction in order to secure a conditional approval. However, none of these proposals would have prevented the transaction from having a detrimental impact. On March 23, 2017, UPC Polska withdrew its application for concentration approval with respect to the contemplated takeover of Multimedia Polska. According to the provision of antimonopoly law, in such situation the UOKiK is under an obligation to discontinue its proceedings.

“We have performed an analysis of the results obtained in the course of market testing as well as the explanatory notes provided by UPC Polska and the proposed terms and conditions of the transaction. These show clearly that the contemplated concentration would have restricted competition on the pay television and Internet access markets in
11 cities in Poland” – says Michał Holeksa, vice-president of UOKiK. The cities in question were Chełm, Gdańsk, Gdynia, Kalisz, Kędzierzyn-Koźle, Lublin, Mielec, Sopot, Szczecin, Tarnów and Warsaw.

“Once the concentration was complete, UPC Polska would have been able to operate without paying attention to its competitors, counterparties or even its own consumers. The company would be left without any incentives to enhance the quality of its services or to drive prices down. As a result, cable TV subscribers could face a price hike” – the vice-president of UOKiK adds.

The aggregate market shares of the undertakings involved in the concentration scheme in each of the 11 cities referred to above are between 40 and 80%.

Additional information for the media:

UOKiK Press Office
pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone: 22 55 60 430
E-mail: biuroprasowe@uokik.gov.pl

Twitter: @UOKiKgovPL