By Tom Fairless
BRUSSELS--European Union antitrust investigators have opened an
in-depth probe into Liberty Global PLC's purchase of a controlling
stake in De Vijver Media of Belgium, the second deal by John
Malone's international cable group that has come under scrutiny
from EU regulators.
The European Commission said it was concerned that Liberty's
purchase of a 50% stake in De Vijver Media could violate the
region's antitrust rules. Liberty owns a majority stake in
Belgium's biggest cable company, Telenet, while De Vijver owns two
Dutch language TV channels.
The commission said the deal could allow the merging companies
to shut out competitors from selling TV services to consumers in
Flanders, a Dutch-speaking region of northern Belgium. It is also
concerned that rival TV channels could find it harder to obtain
access to Telenet's cable platform.
"The proposed transaction will create a close relationship
between the largest TV retailer in Flanders, Liberty-controlled
Telenet, and two of the region's most popular free-to-air TV
channels, Vier and Vijf," the commission said in a statement.
A final decision on the case is due by Feb. 5, 2015.
The fresh probe comes as EU regulators prepare to announce their
verdict on Liberty's planned 6.9 billion euros ($9.5 billion)
acquisition of Dutch cable operator Ziggo, after opening an
in-depth investigation in May. A decision is expected by Nov.
3.
Investors have been watching the progress of the Ziggo review
closely for signs of how EU authorities will treat further deals in
Europe's rapidly-consolidating telecoms sector.
Write to Tom Fairless at tom.fairless@wsj.com
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