Digi. A huge fine was given to the company that owns RCS & RDS and the subsidiaries in Italy, Spain, or Hungary, and the reason why it is applied calls into question the activity of the Romanian company. More precisely, Digi's subsidiary in Hungary was fined 280.000 euros, equivalent in forints, by the Hungarian competition authority, temporarily blocking the acquisition of Invitel, something that somewhat hinders Digi's expansion plans.
Digi. Although the Hungarian authorities approved in May 2018 the purchase of the company Invitel by the Romanians, it seems that now it has been temporarily blocked because it was not communicated correctly how the services of the two companies overlap in certain localities. Digi has a company in Hungary called i-TV which was not supposed to offer services in the same localities where Invitel operates, but this condition was violated by the Romanian company.
DIGI. RECORD FINE Received by the Company
Digi. In the initial plans presented by the Romanians for the acquisition of the Invitel company, it was said that the services of the two entities overlap in 23 localities, when in reality it is about 89. Considering that the difference between the two numbers is so great, the Hungarian authorities they decided to impose a fine of 280.000 euros, but apparently to withdraw the agreement offered to Digi to buy the Invitel company in 2018, but it will probably be attacked by the Romanians.
The Hungarian Competition Authority (GVH) has withdrawn its permission for Digi to acquire Invitel, the country's leading alternative telco. In a statement, it says that it has taken the decision due to a misleading disclosure, for which it has imposed a fine of HUF90 million (€280,000). The GVH notes that it approved the acquisition of Invitel by Digi in May 2018. As a condition, it required i-TV, a company belonging to Digi that leases cable networks to show content from the Digi group, to not operate in areas in which Invitel also provided parallel services.
Digi. The purchase of those from Invitel would have given the Romanian company a much stronger position on the Hungarian market, but the false presentation of the factual situation brought a fine that no one would ever impose in Romania. Those from Digi will most likely solve the problems in Hungary, and most likely they will also complete the purchase of those from Invitel, but it is possible that they will be forced to pay a fine for the whole problem.
