EC opens deeper probe into Viasat and Inmarsat merger • The Register

The European Fee is to probe extra deeply Vista’s proposed $7.3 billion purchase of fellow satellite tv for pc maker Inmarsat on the again of worries concerning the potential discount of competitors for in-flight Wi-Fi connectivity.

It is a additional blow for each firms, which have waited to consummate their marriage since November 2021 when the merger talks have been made public. The UK’s Competition and Markets Authority signaled some months back that it too is taking a better have a look at the tie-up.

At the moment, US-headquartered Viasat and UK-based Inmarsat every personal and function 4 and 15 geostationary earth orbit (GEO) satellites respectively, counting on these constellations to supply in-flight connectivity (IFC) to industrial airliners.

After a preliminary investigation, the EC has now voiced “considerations” about three factors: the 2 go face to face in tenders as shut rivals; there are few suppliers generally and excessive regulatory or technological limitations to entry exist; and the satellite tv for pc market is in a state of flux, with new non-geostationary rivals getting into or planning to enter IFC market – though the Fee is not sure what aggressive stress they will exert.

Starling, OneWeb, and Telecast are the opposite market entrants.

As such, the EC is uneasy about provide of in-flight broadband providers throughout the European Financial Space and plans to scrutinize issues extra carefully to find out if its preliminary considerations are justified.

“In-flight connectivity is a nascent and rising market in Europe,” said Margrethe Vestager, EC government veep accountable for competitors coverage. “With our in-depth investigation, we intention to make sure that the acquisition of Inmarsat by Viasat doesn’t result in increased value and lesser high quality for in-flight connectivity providers on flights in Europe.”

The Fee has 90 days to decide on the merger, and it was at pains to state that the opening of a deeper assessment doesn’t prejudge the end result of that work.

In a joint statement, Viasat and Inmarsat acknowledged the beginning of the Part 2 investigation by the EC.

“We stay dedicated to persevering with engagement with the European Fee and are assured that they proposed mixture will strengthen competitors within the rising satellite tv for pc communications market and allow the mixed group to supply progressive new providers to its clients in Europe and world wide.” ®