HC directs govt to assess impact of Robi-Airtel merger

The High Court yesterday asked the government to explain in four weeks why it should not be directed to assess the market impact of the proposed merger of Robi and Airtel by constituting a competition commission.

The court came up with the rule following a writ petition, claiming that Robi, Grameenphone and Banglalink will hold 96 percent share of the mobile phone market if the merger gets a go-ahead.

Therefore, new operators will feel discouraged to enter the market and consumers will be deprived of better offers from the competing firms, the petition said.

Nazmus Sakib Al Azam, a subscriber of Airtel, filed the public interest litigation with the HC yesterday. The government is bound to form a competition commission by appointing a chairman and at least four members under the Competition Act 2012, according to the petition.

But, the government has failed to find a competent person to appoint as the chairman of the competition commission to make it functional even after three years of its establishment, the petitioner said.

The HC bench of Justice Tariq Ul Hakim and Justice Farid Ahmed Shibli issued the rule. 

Secretaries to the cabinet division, commerce ministry, Bangladesh Competition Commission, and telecom ministry, secretaries and chairman of Bangladesh Telecommunication Regulatory Commission, and CEOs of Robi and Airtel have been made respondents to the rule, petitioner's counsel Yousuf Ali told The Daily Star.

The merger, which will make the combined entity the second largest mobile operator in Bangladesh, is now awaiting the final approval.