Italy’s competition authority, AGCM, has expressed concerns regarding a planned merger between Swisscom’s Italian subsidiary, Fastweb, and Vodafone Italia. The deal, valued at 8 billion euros, could pose a threat to competition within the country’s fixed-line connectivity market.
The watchdog initiated an in-depth review of the transaction last week, signaling that the combination of Swisscom’s Fastweb and Vodafone Italia could lead to reduced market competition. If approved, the merger would create Italy’s second-largest fixed-line broadband operator, trailing only Telecom Italia (TIM).
AGCM’s bulletin, published on Monday, highlighted that the merger could potentially result in a dominant player in the wholesale fixed-line services market, impacting both retail services for residential customers and businesses. It noted the risks posed to public administration and corporate customers, along with concerns over the full-fiber connectivity segment, a key area of growth in Italy’s broadband market.
