On the basis of Regulation (EU) 2022/2560 on foreign subsidies ("FSR"), the European Commission has opened a new in-depth investigation into the acquisition by Emirates Telecommunications Group Company PJSC ("e&") of sole control of PPF Telecom Group B.V. ("PPF"), excluding its Czech business. e& is a public telecommunications operator established in the United Arab Emirates. Its activities include telecommunications companies and the underlying infrastructure.
The investigation concerns, in particular, alleged subsidies in the form of an unlimited guarantee from the United Arab Emirates and a loan from UAE-controlled banks directly facilitating the operation. These subsidies are among those most likely to distort the internal market according to the CSR.
The Commission suspects that these subsidies enabled e& to complete its acquisition of PFF, but also that they will serve to strengthen the future competitive position of the merged entity.
At the end of the 90 working days following notification of the transaction, the Commission is due to issue its decision on 15 October 2024.
For further information, see the Commission's press release.