Budapest, 16 July 2025 - The Hungarian Competition Authority (GVH) has conditionally approved the acquisition of PR-Telecom Zrt. by 4iG Távközlési Holding Zrt., subject to the fulfillment of specific commitments. PR-Telecom Zrt., a medium-sized cable operator, currently provides fixed internet, telecommunications, and television broadcasting services to approximately 55,000 predominantly residential customers across 270 municipalities. The GVH’s clearance is contingent upon the implementation of remedies designed to address identified competition concerns. These commitments are intended to safeguard consumers by preventing potential price increases and ensuring the continued promotion of effective competition within the relevant markets.
The Hungarian Competition Authority (GVH) commenced proceedings on 1 August 2024 to review merger notification No. ÖB/42/2024, submitted by 4iG Távközlési Holding Zrt., regarding the proposed acquisition of control over PR-Telecom Távközlési, Kereskedelmi és Szolgáltató Zrt. (PR-Telecom). This process marks the formal examination of the transaction under national competition regulations, ensuring that all relevant legal requirements and market considerations are thoroughly assessed.
The initiation of the competition proceeding was justified because, based on the data provided in the merger notification, the combined market shares of the parties in the retail fixed internet and retail fixed television broadcasting sectors exceeded the thresholds established in the GVH’s guidelines, above which there is a heightened risk of adverse effects on competition. The initiation of these proceedings aims to ensure careful assessment of potential competition concerns arising from significant market overlaps that surpass the stipulated notification criteria.
During the course of its review, the GVH conducted a comprehensive information-gathering process to assess the characteristics of the relevant markets and the probable effects on competition. The investigation established that the fixed telecommunications networks operated by companies belonging to the 4iG Group and those of PR-Telecom overlapped in 79 municipalities. The detailed analysis of the GVH concluded that, in 56* of these municipalities, the proposed transaction would result in a significant lessening of competition within the fixed internet and television broadcasting service markets. In these specific areas, the combined market share of the parties would exceed 50%, with the transaction leading to a marked increase in market concentration. These circumstances were found to carry a substantial risk of adverse competitive effects, most notably the potential for increases in consumer prices.
The ex-ante merger control activities of the GVH are aimed to prevent the development of market conditions detrimental to competition, such as increased prices, reduced consumer choice, or diminished innovation. To achieve this objective, the GVH may implement proportionate interventions to address identified competition concerns arising from a proposed transaction. In cases where the anti-competitive effects cannot be effectively remedied, the merger may ultimately be prohibited. Conversely, if the potential adverse effects can be mitigated and the merging parties commit to implementing appropriate measures, the GVH may approve the transaction, potentially without the need for additional remedy obligations.
In this case, following the GVH’s assessment of the likely adverse competitive effects, 4iG proposed a set of commitments to address these concerns. These commitments were further refined through multiple rounds of discussions at the request of the GVH. The commitment, which is binding for a period of five years following the merger, comprises two main elements: safeguards to preserve competitive pricing and temporary restrictions on promotional activities in the event of market entry by a competitor. Additionally, the commitments include verifiable mechanisms that enable effective ex-post monitoring to ensure ongoing compliance with the prescribed measures.
As part of its price-related commitment intended to directly benefit consumers, 4iG identified, for each of the 56 municipalities where the GVH found potential adverse competitive effects, a corresponding “reference municipality” in which it operates under competitive market conditions. 4iG has committed that, for the next five years, any changes to prices (including discounts) in these 56 municipalities will be directly aligned with price changes implemented in the respective reference municipalities. This mechanism is designed to ensure that competitive pricing dynamics are reflected in areas where, absent such commitments, adverse competitive effects could arise. Furthermore, with respect to pricing, 4iG has also agreed to extend its voluntary pricing moratorium – originally requested by the Ministry of National Economy – until 31 December 2026. This applies to all customers in the affected municipalities who are served by PR-Telecom networks as of 1 July 2026, thereby providing additional assurance of price stability during the specified period.
The objective of the campaign-related commitment is to facilitate the entry of new competitors into the market. Under this undertaking, 4iG is prohibited from engaging in active marketing activities or implementing customer retention measures targeting customers in the relevant areas for a period of four months following a new entrant’s notification of its intention to commence wholesale services. This restriction is intended to enhance the prospects for new market entrants to acquire a sufficient customer base during the initial phase of market entry, thereby supporting the economic viability of their operations.
In its decision concluding the proceedings, the Competition Council of the GVH imposed the commitments on 4iG (as detailed in the annex to the decision), as the fulfilment of these commitments would eliminate the significant reduction of competition resulting from the concentration resulting from the acquisition of sole control over PR-Telecom Zrt by 4iG Távközlési Holding Zrt. On this basis, the GVH approved the transaction.
The case was registered under the case number VJ/36/2024.
*The 56 municipalities identified during the GVH’s investigation as being affected by the commitments are as follows: Ajka-Padragkút (treated as a separate municipality for the purposes of this decision), Alattyán, Balatonakarattya, Balatonalmádi, Balatonfűzfő, Balatonkenese, Bejcgyertyános, Bögöt, Bögöte, Budakeszi, Csénye, Farkaslyuk, Felsőörs, Gérce, Halásztelek, Halimba, Hárskút, Hegyfalu, Hidegkút, Hosszúpereszteg, Jánoshida, Jászalsószentgyörgy, Jászberény, Jászboldogháza, Jászdózsa, Jászfelsőszentgyörgy, Jászivány, Jászszentandrás, Káld, Kiskunfélegyháza, Litér, Majosháza, Márkó, Meggyeskovácsi, Mencshely, Nagyvázsony, Nyékládháza, Nyirád, Nyőgér, Öcs, Ölbő, Papkeszi, Porpác, Pósfa, Pula, Répceszentgyörgy, Sárvár, Szeleste, Szigetszentmiklós, Szőc, Taksony, Tótvázsony, Úrkút, Vásárosmiske, Vöröstó, and Zsédeny.
GVH Communications
Bálint Horváth, Head of Communications +36 20 238 6939
Katalin Gondolovics, Press Officer +36 30 603 1170