Competition watchdog stops MTel’s ViDaNet merger

Hungary’s competition authority GVH yesterday announced that is has turned down a proposal from Magyar Telekom (MTel) concerning its request to take control of ViDaNet, portfolio.hu reports. MTel acquired 100% of voting rights in ViDaNet on 8 December 2008, and submitted a request for approval to the GVH soon after. ViDaNet is a cable TV, internet and voice communications provider in 20 Hungarian cities, including Gyor, Tata, Mosonmagyarovar, Kaposvar, Pecs and some parts of Budapest. However, the watchdog concluded the acquisition would give MTel a virtual monopoly on the landline telephone and cable TV markets in regions where ViDaNet operates. It rejected the request for approval of the merger in spite of promises MTel made to remedy the situation.