Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) plans to appeal against Antitrust Authority director general Ronit Kan’s decision not to allow the company to merge with its subsidiary, satellite broadcaster YES. Bezeq is waiting for Kan’s arguments, which are due next week.
The Antitrust Authority opposes the merger on the basis of its analysis of competition in the multi-channel television market, and because of the pending entry of new broadcasting technology based on Bezeq’s infrastructure. The Antitrust Authority is concerned that a Bezeq-YES merger will prevent competition between a third platform and YES.
Sources say that, in its appeal, Bezeq will probably claim that the Antitrust Authority had approved a Bezeq-YES merger in the past. Sources in the Antitrust Authority said that such a merger was appropriate under the conditions and technology at the time.
The Antitrust Authority said Bezeq refused to comply the terms set for making its infrastructures available for other content providers. The Antitrust Authority therefore has no choice but to oppose a Bezeq-YES merger. The sources added that when potential competition between two infrastructures is conceded, the infrastructures should at least be open to all content providers. However, Bezeq refused to reach an agreement with the Antitrust Authority on this matter.
Published by Globes [online], Israel business news - www.globes.co.il - on February 12, 2007
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