The Hungarian competition authority, Gazdasági Versenyhivatal (GVH), has approved the acquisition of PR-Telecom by 4iG Távközlési Holding Zrt. under strict conditions aimed at addressing identified competition concerns. The acquisition involves a medium-sized cable service provider that offers fixed internet, telephone, and television services to approximately 55,000 residential customers across 270 municipalities.

The GVH initiated its investigation on August 1, 2024, after 4iG submitted a merger notification regarding its acquisition of PR-Telecom. The authority found that the market shares of the merging parties exceeded thresholds that could potentially harm competition in the retail fixed internet and television broadcasting markets.

During the investigation, the GVH conducted extensive data collection to analyze the affected markets and potential competitive impacts. It identified significant overlaps in the telecommunications networks of 4iG and PR-Telecom in 79 municipalities, with 56 municipalities showing a likelihood of substantial decreases in competition, particularly in pricing.

The GVH's merger control process aims to prevent harmful market situations, such as price increases or reduced choice and innovation. In cases where competition issues cannot be resolved through corrective measures, the authority may prohibit the merger. However, if the parties can commit to effective remedies, the merger may be approved.

In this case, 4iG made commitments to mitigate the anticipated negative competitive effects, which were refined through several rounds of discussions with the GVH. The commitments include a five-year pricing obligation to ensure competitive pricing in the identified municipalities and temporary restrictions on marketing campaigns to facilitate the entry of new competitors.

Specifically, 4iG has agreed to align its pricing changes in the affected municipalities with those in designated reference municipalities where competition exists. Additionally, the company will maintain a voluntary pricing moratorium until December 31, 2026, for customers served by PR-Telecom's networks in the affected areas.

The GVH's decision to approve the merger was based on the belief that the commitments made by 4iG would effectively eliminate the significant reduction in competition resulting from the acquisition of PR-Telecom.