Slovenian Competition Protection Agency (SCPA), Dunajska cesta 58, Ljubljana, issued a decision on 16 March 2026 in the case of the assessment of the acquisition of control by the company Telemach Slovenija d. o. o. over the company T-2 d. o. o., by which it initiated the procedure for assessing compliance with competition rules, because serious suspicion has been demonstrated about its compliance with competition rules.
SCPA finds that in the case of the concentration in question, there is a horizontal overlap of the activities of the participating and related companies in the concentration on the following markets:
a) retail mobile telephony market,
b) retail fixed telephony market,
c) retail fixed broadband access market,
d) retail fixed broadband Internet access market,
e) retail linear TV program supply market,
f) retail non-linear TV program supply market,
g) retail package services market.
As part of the in-depth assessment of the concentration, SCPA will also examine potential vertical effects of the concentration that could arise from vertical links between individual relevant markets in which the parties to the concentration operate.
According to SCPA's findings, there is a strong level of market concentration in the retail mobile telephony market, which would further increase with the concentration of the companies Telemach and T-2. The company Telekom Slovenije has the highest market share, followed by Telemach and A1. The company T 2, which offers only postpaid mobile telephony, not prepaid, is the fourth largest mobile operator. The concentration in question would likely create an incentive to increase retail prices and significantly reduce the possibility of changing operator, as the market is already highly concentrated. Only three MNOs would remain on the retail mobile telephony market, all others being mere resellers of services (e.g. Hot mobil, Softnet, Mega M), which are entirely dependent on commercial wholesale access.
According to AKOS, Telemach has the highest market share in the retail fixed telephony market in the period 2021-2024, which is constantly increasing. T-2 is the third largest operator, whose share is also increasing. Telemach would gain a dominant position in the retail fixed telephony market with the concentration in question. Given the market structure and the high level of concentration, there is a likelihood that the concentration in the retail fixed telephony market will significantly impede effective competition due to the reduction of competitive pressure and the increased possibility of unilateral conduct by the merged entity in this market.
The concentration in question would cause a significant change in the structure of the retail fixed broadband market. Both companies involved in the concentration, Telemach and T-2, own significant infrastructure, so the merger would result in a reduction in the number of competing networks, which would significantly reduce infrastructure competition.
According to AKOS data, Telemach has the highest market share in the retail fixed broadband and fixed broadband Internet access markets. Its market share is growing compared to Telekom Slovenije, which is the second largest operator by number of broadband connections. T-2 is the third largest operator. Based on the information collected, SCPA concludes that there is a likelihood of the creation or strengthening of a dominant position and thus serious concerns about a significant lessening of competition.
Also in the retail linear TV market, the concentration in question represents a merger of the first and third largest providers and the market share of the merged company would exceed 50%. After the concentration, only three major (larger) operators would remain on the market. There is already a high degree of market concentration in the retail market for the supply of linear TV programmes, which would be further increased by the merger.
The companies T-2 and Telemach offer different service packages, with both companies having the highest market shares in the quadruple packages. Telemach also has a significant market share in the dual and triple packages.
According to the SCPA's findings, T-2 is an important driver of competition in the telecommunications markets, which significantly affects the competitive dynamics in the market. The merger would eliminate the direct competitive pressure exerted by T-2 on Telemach, which could enable the merged entity to act to a greater extent independently of its competitors, business partners and end users. The concentration in question would lead to a significant increase in the market power of Telemach and T-2, particularly in the retail markets for fixed telephony, broadband access, broadband Internet access and the supply of linear TV programmes, which could lead to a significant impediment to effective competition in the territory of the Republic of Slovenia.
In addition to unilateral anti-competitive effects, the concentration in question also increases the risk of coordinated anti-competitive effects, which may arise when the market structure after the concentration enables or facilitates tacit concerted conduct between the remaining major providers, which, due to the reduced number of significant competitors, can more easily achieve or maintain an equilibrium that is less favourable for consumers. The preliminary analysis shows that all relevant retail markets are already highly concentrated before the concentration in question and that the market structure would change significantly after the concentration. The market would remain mainly composed of three major providers (the merged entity, Telekom Slovenije and A1 Slovenija), in addition to a smaller number of significantly smaller providers with limited market power. Such a market structure would increase market transparency and enable more stable market conditions, which reduces uncertainty regarding the conduct of the remaining participants. This may consequently facilitate the mutual adjustment of the conduct of undertakings even without concluding an agreement or concerted conduct within the meaning of Article 5 of the ZPOmK-2.
Since the concentration raises serious doubts about its compliance with the competition rules, the Agency has decided to initiate proceedings. SCPA will determine the relevant product or service markets and the relevant geographic markets in more detail during the procedure, and the definition of the relevant markets may also be changed during the procedure if circumstances so dictate.
SCPA finds that the concentration of the companies Telemach and T-2 is subject to the provisions of the ZPOmK-2 and there is serious doubt about its compliance with the competition rules in the Republic of Slovenia. Therefore, based on the fourth paragraph of Article 70 of the ZPOmK-2, SCPA has initiated a procedure for a more detailed assessment of the compliance of the concentration in question with the competition rules by means of a decision.
SCPA therefore calls on all persons to provide it with information that could be relevant for the decision in the procedure in question, referring to the specific case. Senders should, to the extent possible, support their statements with appropriate justifications and available evidence.
In the event that certain data constitute a trade secret in accordance with point 17 of the first paragraph of Article 3 of the ZPOmK-2, which stipulates that a trade secret is data the disclosure of which would cause significant damage and is known to a limited circle of persons, the Agency calls on companies to submit appropriate explanations and a version of the document that does not contain data constituting a trade secret, in accordance with point 6 of Article 42 of the ZPOmK-2, on the existence of reasons for protecting the data as a trade secret. Data constituting a trade secret, namely, in accordance with point 16 of Article 3 of the ZPOmK-2, is classified as confidential data, which SCPA protects as confidential in accordance with Article 42 of the ZPOmK-2 and which all those who become acquainted with it in the course of their work must protect as confidential in accordance with Article 36 of the ZPOmK-2.
In accordance with Article 41 of the ZPOmK-2, SCPA must, at the request of a person who is the source of a report or other information used by SCPA in the exercise of its powers, protect the confidentiality of their identity if the person proves likely that disclosure would cause them significant harm. In the event of a request to protect your identity, you must also submit to SCPA, when submitting documents, a version of the documents that does not contain information that would constitute disclosure of the source, and explain why disclosure of your identity could cause you significant harm.