The European Commission is to probe more deeply Vista's proposed $7.3 billion buy of fellow satellite maker Inmarsat on the back of worries about the potential reduction of competition for in-flight Wi-Fi connectivity.
This is a further blow for both companies, which have waited to consummate their marriage since November 2021 when the merger talks were made public. The UK'sthat it too is taking a closer look at the tie-up. Currently, US-headquartered Viasat and UK-based Inmarsat each own and operate four and 15 geostationary earth orbit satellites respectively, relying on those constellations to provide in-flight connectivity to commercial airliners.
After a preliminary investigation, the EC has now voiced"concerns" about three points: the two go head to head in tenders as close rivals; there are few suppliers in general and high regulatory or technological barriers to entry exist; and the satellite market is in a state of flux, with new non-geostationary rivals entering or planning to enter IFC market – although the Commission is unsure what competitive pressure they'll exert.