The European Commission approves e&’s acquisition of Czech PPF Telecoms

Approval was granted after e& committed to key conditions, including relinquishing unlimited state guarantees, restricting funding of PPF’s EU activities to emergencies with prior approval, and notifying the Commission of any future EU acquisitions, regardless of size.
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The European Commission approved Emirates Telecommunications (e&) €2.15-billion acquisition of Czech PPF Telecoms’ assets after thoroughly investigating under its newly implemented Foreign Subsidies Regulation (FSR). This deal, covering operations in Bulgaria, Hungary, Serbia, and Slovakia, raised concerns among the EU regulators regarding potential market distortion due to foreign subsidies from the UAE government.

The Commission launched the first-ever investigation under the FSR, a regulatory tool aimed at preventing foreign state aid from undermining competition in the EU’s internal market. The probe revealed that e& had received foreign subsidies through grants, loans, and state guarantees but found no immediate negative impact on competition at the time of the acquisition.

Ultimately, the European Commission approved the deal after securing important commitments from e& to mitigate future risks. These concessions included relinquishing unlimited state guarantees, restricting the funding of PPF’s EU activities to emergencies requiring prior approval, and committing to notify the Commission of any future acquisitions within the EU, regardless of their size. These safeguards ensured the transaction would not disrupt the competitive landscape in the EU market while highlighting the Commission’s robust enforcement of the FSR in regulating foreign subsidies and maintaining a fair marketplace.