Bosnia’s Competition Council approves conditional takeover of Telemach BH by BH Telecom

The official statement and decision were published on the Council’s website, detailing the conditions required for the merger to proceed.

According to the announcement, during its 34th session held on October 15, 2025, the Competition Council adopted a Resolution conditionally approving the concentration resulting from BH Telecom’s acquisition of direct control over Telemach BH.

The procedure was conducted in accordance with the Law on Competition of Bosnia and Herzegovina (“Official Gazette of BiH”, Nos. 48/05, 76/07, and 80/09), following a comprehensive analysis of market shares in the internet, fixed telephony, and audiovisual content sectors across Bosnia and Herzegovina.

The Council determined that unrestricted implementation of the merger could distort market structure and strengthen BH Telecom’s dominant position. Consequently, the concentration was approved conditionally, contingent upon six precisely defined measures designed to mitigate potential negative effects on market competition within specified timeframes.

Under the decision, the merger participants are required to comply with the following:

Measure 1: The applicant (BH Telecom) must not raise retail prices for fixed telephony, internet, and audiovisual distribution services, nor for existing double or triple packages, beyond the THCI index, calculated as THCI = CPI + X, where CPI represents the official consumer price index (as published by the Agency for Statistics of BiH), and X is a corrective factor reflecting justified operational cost changes (OPEX), while maintaining current service quality levels.

Measure 2: All subscription contracts with mandatory durations for fixed telephony, audiovisual, and internet services that are active at the time of the transaction must remain in force under their original terms until their expiration. If prices or conditions change unfavourably under Measure 1, subscribers have the right to terminate contracts without penalty, in accordance with applicable sectoral regulations.

Measure 3: The participants must continue operating as separate business entities. BH Telecom must establish mechanisms to prevent the flow of sensitive business information between employees of the two companies. This does not include mandatory reporting to BH Telecom and designated persons appointed by its management (whose names must be submitted to an independent auditor and the Competition Council) regarding performance results, financial data, and synergy effects related to wholesale services.

Measure 4: BH Telecom and the acquired company may not, individually or jointly, assume majority control over any other telecommunications operators or parts of such companies operating in the Bosnian market.

Measure 5: Telemach BH shall not apply for a license to use radio frequency spectrum for providing services through mobile access systems.

Measure 6: Within 18 months, BH Telecom must sell part of Telemach’s assets in order to reduce Telemach’s market share in Bosnia and Herzegovina’s fixed internet segment by three percentage points compared to its current level.

The Council noted that, prior to the adoption of this decision, no signed purchase agreement had been submitted. The legal basis for the concentration, therefore, rests on a signed Letter of Intent.

The Competition Council emphasised that it does not approve the acquisition itself, but rather assesses the intended concentration and its potential effects on market competition, in line with Article 17 of the Law on Competition.

This decision marks another step in the consistent enforcement of competition rules, the Council stated, adding that it remains committed to ensuring equal market conditions for all economic entities and promoting transparency.

The implementation of these measures will be monitored jointly by the Competition Council and an appointed Independent Auditor, with regular public updates to follow, the Council concluded.