The European Commission has referred the planned acquisition of the cable network operator Kabel Baden-Württemberg by Liberty Global Europe Holding to the Bundeskartellamt for further examination.

The President of the Bundeskartellamt, Andreas Mundt, stated: "The referral of this national cable case is in line with the European Commission's general referral practice. Already in the run-up to the referral, the Bundeskartellamt worked in close and trustful co-operation with the Commission and the companies involved. We can now start straight away with our examination."

Due to the aggregate turnover achieved by the companies involved the project was initially subject to European merger control. It was notified to the European Commission in mid-April. In agreement with the Federal Ministry of Economics and Technology, the Bundeskartellamt then filed an application with the European Commission to have the case referred to Germany for merger control proceedings.

In the Bundeskartellamt's view the effects of the concentration are confined to Germany. Furthermore, through its own investigations in numerous proceedings, the Bundeskartellamt is familiar with the markets and market participants involved.

In the authority's opinion the concentration's effects on competition need to be closely examined, in particular with regard to the so-called licensing market. In the licensing market the cable network operators compete for licensing agreements concluded with the owners of large premises with a large number of housing units, in particular housing associations. The signal delivery market might also have to be examined more closely. This market reflects the competitive relationship between the cable network operators and broadcasting groups in Germany.

With its referral decision the European Commission has now confirmed the Bundeskartellamt's preliminary assessment.

The European Commission's press release is available here.