As European Commission merger cases are revisited by regulators, pressure for telecom consolidation and scrutiny intensifies with Mobile Virtual Network Operator (MVNO) Europe warns that reducing operators in pursuit of scale risks hinders competition, raises consumer costs, and weakens the Single Market.
Unless future mergers ensure fair access, innovation safeguards, and balanced oversight.
MVNOs serve millions of consumers and thousands of businesses, and Europe is arguing that consolidation alone does not drive investment does.
The warning follows the European Commission’s efforts to modernize merger guidance, under EU merger control, alongside rising pressure to shrink the number of telecom operators across the continent.
According to Jacques Bonifay, “consolidation for its own sake does not foster innovation or investment,” particularly in a market shaped by EU telecom mergers and acquisitions and scrutinized under EU merger control regulation.
EU Assessing Sustainability in Merger Cases
Recent European commission merger cases developments show the Commission expanding its lens beyond traditional competition metrics to include sustainability and innovation impacts an approach now shaping EU commission merger control decisions.
This became clear in the conditional approval of ADNOC’s acquisition of Covestro, described as a landmark case that may redefine how mergers in telecom industry in Europe are evaluated.
Executive Vice President Ribera said the deal passed only after commitments ensured “access to key Covestro patents in the field of sustainability,” enabling competitors to advance research crucial to Europe’s future.
This marks a potential shift in Brussels’ approach to merger reviews, with implications for how EU merger guidelines and EU guidelines on merger control interpret harm.
For the first time, remedies were required not only to prevent distortion but to stimulate innovation, suggesting broader theories of harm under competition law. It also aligns with Ribera’s mandate to “modernize the way we identify mergers that could harm European companies or consumers,” including defining clearer criteria for when scale may benefit the Single Market.
Telecom operators are watching closely. If sustainability and innovation become integral to merger review frameworks, EU’s telecom mergers will face stricter evaluation, especially where consolidation risks harming Internet of Things (IoT), Machine-to-Machine (M2M), and connected vehicle markets areas where MVNOs are leading disruptors. New expectations around EU merger regulation thresholds and EU merger control thresholds reinforce that even large-scale telecom combinations must demonstrate clear benefits rather than assumed efficiencies.
MVNOs Push Back Against the Illusion of Scale
MVNO Europe argues that competition, not consolidation, is the engine of Europe’s digital transition. Contrary to claims that MVNOs “do not invest,” the organization stresses that they fund every part of the telecom value chain except the radio network itself, contributing billions in wholesale fees that support national infrastructure.
Their position challenges assumptions long embedded in analyses of EU telecom mergers and calls for reforms to the EU merger directive to better reflect the role of MVNOs in innovation.
Bonifay warns that reducing operator numbers of risks entrenching oligopolies, raising prices, and limiting consumer choice.
“MVNOs are the mavericks, the disruptors, the ones who keep the market honest,” he writes. Their policy recommendations include mandating fit-for-purpose wholesale access, rejecting sector-specific leniency, preserving competition in emerging connectivity markets, and ensuring users retain meaningful choice.
As Europe advances its digital and green transitions, MVNOs argue they are uniquely positioned to deliver sustainable, cross-border connectivity without duplicating infrastructure provided competition remains protected through robust merger control EU frameworks.
As the European Commission merger cases redefines how mergers are judged by telecom consolidation to sustainability-driven remedies, the path forward hinges on keeping Europe competitive by keeping its markets open. The future of connectivity, innovation, and user choice depends on it.
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