BRUSSELS (Reuters) - EU antitrust regulators have decided to expand their investigation of Orange's (PA:ORAN) planned 3.4 billion euro (2.6 billion pounds) bid for Jazztel (MC:JAZ).
The European Commission said in a statement on Thursday that it had opened an in-depth investigation, giving it 90 working days until April 24 to take a decision.
Orange, France's largest mobile firm, is looking to use the deal to get ahead of rival Vodafone (L:VOD) in the Spanish mobile market. Telefonica (MC:TEF) is the market leader there.
The Commission said that the merged entity would not be in a dominant position, but it had concerns that the proposed deal would lead to a significant loss of competition for fixed Internet access and fixed-mobile multiple play offers, potentially resulting in price increases.
The Commission said that possible concessions Orange submitted on Nov. 13 were insufficient to dispel its concerns.
The acquisition of Jazztel would add 1.5 million broadband subscribers to Orange's client base and also help it take on competitors with fixed, TV and wireless packages.
The Spanish telecoms market has seen a wave of consolidation in recent months as tough competition and falling prices hit operators. The most notable deal was Vodafone's 7.2 billion euro takeover of Spanish cable operator Ono in March.
(Reporting By Philip Blenkinsop; editing by Adrian Croft)