The bid of Sweden’s telecom operator Telia is facing an investigation after failing to address competition concerns, two people familiar with the matter said on 9 May.

In July 2018, Telia announced the deal, worth 9.2 billion Swedish krona (€850 million). The company was then looking to expand its media business as telecom groups spend heavily to capitalise on changing television viewing habits.

Telia offered concessions to the European Commission last month but they were not sufficient to allay regulatory worries, the sources said. Sources also added that the Commission will announce the opening of an in-depth investigation and will give the team of investigators 90 working days to examine the deal.

The Swedish government owns 27% of Telia, which makes the deal a delicate issue for Sweden as the deal with the Bonnier Group, which is owned by a prominent Swedish family, would give it the right to include Telia in its other holding that include Sweden’s biggest commercial broadcaster, TV4, and streaming service C More and Finnish MTV.