The Dutch Authority for Consumers and Markets (ACM) has prohibited the proposed acquisition of part of Delta Fiber Nederland’s fiber-optic networks by Glaspoort. According to the regulator, the transaction would reduce competition in the Dutch telecommunications market, potentially leading to higher prices, less choice, and lower service quality.
The acquisition included fiber-optic networks in various municipalities, serving approximately 200,000 households. Glaspoort is a joint venture between KPN and pension investor APG. The transaction would have placed part of the independent fiber-optic infrastructure in the Netherlands in the hands of a party closely linked to the country’s largest network provider.
ACM Chairman Martijn Snoep states that competition among telecom networks is essential to keep prices competitive and stimulate innovation. According to the regulator, the acquisition would reduce competitive pressure on KPN, making price increases likely.
Fewer provider options
In the affected areas, only two fixed networks would remain after the acquisition: KPN’s and VodafoneZiggo’s. For telecom providers without their own infrastructure, such as Odido and Budget Thuis, the choice would be even more limited. Because VodafoneZiggo does not open its network to other providers, it would become entirely dependent on access to the KPN network.
The ACM points out that independent fiber-optic providers have played an important role in increasing competition in recent years. Delta is the largest player in this sector and now reaches approximately one-fifth of Dutch households. Because the network is open to multiple providers, consumers and businesses have more choice than in the traditional model, in which KPN and VodafoneZiggo dominated the market.
According to the regulator, this competition will continue to decline if independent networks are acquired by established market players. Furthermore, new entrants are no longer expected on a large scale.
Dominant position
The ACM also sees risks at the national level. KPN already owns the majority of the Dutch fiber-optic infrastructure and serves approximately two million fiber-optic customers. Acquiring part of the Delta networks would further strengthen that position.
The decision follows a long-running discussion about consolidating the fiber-optic market. The FD previously reported that KPN had threatened to install its own fiber-optic networks alongside existing Delta networks in some areas. This so-called “overbuilding” would put pressure on Delta’s business case. According to the newspaper, Delta postponed several planned fiber-optic projects partly as a result.
Alternatives to the acquisition
A key argument in the decision is that KPN can offer fiber-optic services in the relevant areas even without the acquisition. Delta’s networks are open to other providers, including KPN. Additionally, KPN can choose to install its own fiber-optic infrastructure to replace the existing copper connections.
The ACM investigated whether modifications to the deal or additional conditions could address the concerns. KPN and Glaspoort submitted proposals to this end, but according to the regulator, these did not sufficiently resolve the competition issues. Therefore, it was decided to prohibit the acquisition.
KPN and Glaspoort may still appeal the decision.