Melita’s proposed takeover of Epic will not automatically be blocked simply because it would reduce Malta’s telecoms providers from three to two, the competition authority has confirmed.

Contacted by WhosWho.mt, a spokesperson for the Malta Competition and Consumer Affairs Authority (MCCAA) said the key consideration for the Office for Competition will be whether the transaction would result in a “substantial lessening” of competition in the relevant market.

“This is assessed on a case-by-case basis, in line with established European merger-control principles, taking into account the competitive conditions in the relevant market,” it said.

Should competition concerns emerge, Melita and Epic could be required to offer commitments or remedies aimed at addressing them before the transaction can proceed.

The MCCAA didn’t specify what these measures could be, stating only that their nature would depend on the specific competition concerns that arise from the transaction and whether the proposed remedies adequately address them.

An attempt by Melita to merge with Epic’s predecessor Vodafone Malta back in 2017 was scuppered after the telecoms companies were unable to satisfy the MCCAA’s requirements.

Vodafone Malta was eventually acquired by Monaco Telecom and rebranded as Epic.

The MCCAA confirmed that the same fundamental test that Melita and Vodafone were subjected to in 2017 still applies today, with the assessment in each case depending on the specific facts and competitive conditions of the transaction.

“The outcome of any merger assessment depends on the particular facts and evidence relating to the transaction under consideration,” it said.

Melita told WhosWho.mt that the economics of the telecoms industry have significantly changed in the past decade, with fibre internet, 5G and cybersecurity requiring significant investment.

“Providing best-in-class digital infrastructure to Maltese residents, businesses and the public sector is essential for Malta's continued economic development and competitiveness. Therefore the next generation of investment decisions must be made now,” they said.

However, GO, Malta’s third telecoms provider, has voiced concerns over the acquisition, stating it raises important questions around competition, consumer choice, pricing, investment and innovation.

It said it expects the MCCAA to carry out a rigorous, transparent, evidence-based and fully independent assessment of the transaction and its proposed impact across the relevant markets.