Malta Communications Authority ‘following Melita-Epic developments closely’

The Malta Communications Authority (MCA) is "closely following" the Melita-Epic developments and could provide technical input to the competent authorities "where appropriate" and within its remit, it told WhosWho.mt.

Melita had announced its intention to acquire Epic, both companies being two of the three mobile network operators in the country. Harald Roesch, CEO of Melita Limited, had said about the move that Malta needs “serious, sustained investment in its digital infrastructure, and that is harder for smaller operators to fund on their own.” He said the two companies have complementary strengths, with leading networks in fixed and mobile. “Bringing them together is about building something better for our customers and for Malta.”

The acquisition remains subject to customary merger control and other regulatory approvals.

Certain concerns were raised following the announcement. GO, the third mobile operator, warned that the proposal raises important questions around competition, consumer choice, pricing, investment and innovation. Meanwhile, the Association for Consumer Rights Malta is concerned that the planned acquisition could lead to higher prices and reduced quality of service in the sector.

A previous attempt at a merger, between Melita and what was then Vodafone back in 2017, had fallen through as the parties were unable to satisfy the Malta Competition and Consumer Affairs Authority’s requirements (MCCAA). The Malta communications Authority had, during that period, issued a report for the MCCAA over the proposed merger, outlining risks unless the MCCAA obtained guarantees that users will benefit from such competition.

In that report, the MCA mentioned that the envisaged market consolidation would result in a new duopolistic scenario in Malta that may not be conducive to higher competition levels in the medium to long term, but stopped short of making that assessment this time round.

This newsroom asked the MCA whether it has concerns over the current planned acquisition, if it will draft another report for the MCCAA, whether its statement regarding a duopolistic scenario holds true today, and whether it would want any regulatory safeguards if the deal is allowed to go through.

“The MCA is aware that any such transaction entails the launch of comprehensive regulatory and legal processes. To this effect, the MCA will continue to follow developments closely and, where appropriate and within its regulatory remit, may provide its technical input and support to the competent authorities throughout their assessments,” The MCA said in response.

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