South Korea's antitrust watchdog said Monday it has approved the acquisition by top mobile carrier SK Telecom of Internet service operator Hanarotelecom, but set terms to ensure fair competition.
SK Telecom agreed in December to buy 38.89 percent of Hanarotelecom for 1.087 trillion won (1.15 billion dollars) from two US investors, Newbridge Capital and the American International Group.
The Fair Trade Commission said SK Telecom will be banned from giving special favours to Hanarotelecom, the country's second largest broadband service provider, in providing bundled telecom services. Such conditions are aimed at ensuring fair competition.
SK Telecom has more than half of the country's over 40 million mobile phone users. SK Telecom expressed regret at the commission's request that it should allow smaller rivals to use its mobile frequency band. "We are worried that the decision could reduce possible benefits to consumers," it said in a statement.