Oxera recently supported GO Malta in its engagement with the Malta Communications Authority (MCA)’s consultation on the regulation of wholesale access services for fixed broadband in Malta.

The Maltese market features two main network operators—GO and Melita—with a third operator, Epic, recently entering the market. The MCA’s market review consultation suggested limited retail competition without regulation, and proposed including virtual unbundled local access and physical infrastructure access in the wholesale market, identifying GO as having significant market power.

Oxera’s economic analysis, commissioned by GO, disputed the MCA’s findings, arguing:

• The retail market is competitive, absent SMP remedies – a careful examination demonstrates that the retail market in Malta is characterised by effective competition
• The MCA’s wholesale market analysis does not reflect the competitive dynamics in the retail market – there is a disconnect between the MCA’s retail market analysis and its wholesale product definition; GO lacks the ability to distort downstream competition or harm consumers

Oxera’s report was submitted to the MCA, alongside GO’s response. Oxera also participated in a meeting with the European Commission to discuss the analysis.

On 29 January 2024, the European Commission opened an in-depth investigation, issuing a ‘serious doubts’ letter, preventing the MCA from adopting its draft measures. Following the investigation, the Commission vetoed the proposed regulation on 27 March, referencing Oxera’s report in its decision. Following this, the MCA has withdrawn its market review and will conduct a new consultation with current regulations remaining in place.