Electronics Weekly
SES
SES is the Luxembourg-based multi-orbit satellite comms giant, providing video and data connectivity to broadcasters and ISPs. It has 70 satellites in operation in MEO (Medium Earth Orbit) and GEO (Geostationary Orbit).
The European Commission considered the effect on competition for the satcoms specialists to merge. Just like the UK’s Competition & Market’s Authority a few days earlier.
Competition from Starlink and Viasat Inmarsat was noted, however. As was the imminent arrival of services from Amazons Kuiper.
The regulator writes:
“Based on its market investigation, the Commission found that there are credible competitors on those markets that, following the transaction, will continue to exert sufficient competitive pressure upon the merged entity. It also found that the merged entity will be constrained by terrestrial alternatives such as fibre in the market for the supply of ‘one-way’ satellite capacity, and by LEO operators in the market for the supply of ‘two-way’ satellite capacity.”
“In addition, based on the results of the market investigation, the Commission considers that the merged entity would not have the ability to foreclose downstream competitors by restricting access to its satellite capacity.”
CMA
The CMA had previously assessed the potential competitive effect of the merger. But it decided not to take matters further.
“The CMA found that the Merged Entity would face significant competitive pressure in the supply of broadband IFC services to commercial airlines, including from vertically integrated companies such as Starlink and Viasat Inmarsat. These competitive pressures are expected to increase further due to the planned entry of Amazon Kuiper.”
“The CMA therefore found that the Merger does not give rise to a realistic prospect of an SLC as a result of input foreclosure in the supply of broadband IFC services to commercial airlines globally and in Europe (including the UK).”
Talks on the merger first began in March 2023, but stalled then resumed and then faced regulatory approval.
SES headquarters are at Château de Betzdorf. This was a donation to the company in the 1980’s by The Grand Duchy of Luxembourg.
Image: SES – Betzdorf HQ
See also: Intelsat completes vehicle satellite connectivity test
