Kyivstar Receives Approval to Acquire GigaCloud: AMCU Sets Strict Conditions for the Deal
10 July 07:32
The Antimonopoly Committee of Ukraine has allowed Kyivstar PJSC to acquire control over the cloud service provider GigaCloud LLC, but only on the condition that it fulfills a number of mandatory obligations. This was reported by "Komersant Ukrainian", citing the Antimonopoly Committee of Ukraine.
During its review of the case, the Committee analyzed the structure of the Ukrainian cloud services market, the positions of domestic and international providers, the level of competition, and the potential consequences of the acquisition of GigaCloud by Ukraine’s largest mobile operator.
In addition, the AMCU consulted with:
- market participants;
- competitors;
- corporate clients;
- government agencies;
- law enforcement agencies.
Based on the results of the study, the Committee determined that the cloud services market remains competitive and that businesses have a wide choice of providers.
Why the deal was approved only with conditions
The AMCU identified the main risks in the potential integration of cloud services with Kyivstar’s telecommunications services.
The regulator believes that without appropriate restrictions, the company could gain a competitive advantage by selling bundled packages that other providers would find difficult to compete with.
That is why approval for the merger was granted only after Kyivstar voluntarily agreed to comply with specific behavioral commitments.
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What restrictions did the Antimonopoly Committee impose?
According to the AMCU’s decision, Kyivstar is required to:
- ensure that customers can use GigaCloud services regardless of which internet service provider they use;
- not require mandatory mobile or fixed-line internet connectivity to access cloud services;
- not deny customers access to cloud services because they have opted out of other services offered by the group of companies;
- allow customers to purchase cloud services separately, even when selling bundled packages.
Any exceptions may be applied only if there are objective technical reasons, which the company must document.
Monitoring will continue even after the agreement is concluded
To ensure compliance with the terms, Kyivstar will submit annual reports to the Antimonopoly Committee of Ukraine.
The AMCU emphasizes that these requirements are intended to:
- maintain fair competition;
- guarantee freedom of choice for business customers;
- prevent discrimination against other cloud service providers.
What Else Did the AMCU Approve?
In addition to the concentration itself, the Committee also approved concerted actions related to the implementation of the corporate agreement, specifically the provisions regarding a temporary non-competition clause.
The AMCU noted that these provisions are of an ancillary nature and do not pose a threat to competition in the Ukrainian market.
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