The Dutch anti-cartel authority ACM has cleared the way for KPN to take over the Dutch activities of Youfone, saying there is sufficient competition in the market.

KPN said last year it wanted to take over the unit, with around 580,000 customers, for €200 million, describing it as a fast-growing and distinctive brand. The brand will continue to operate independently and will not be absorbed into KPN, as happened with XS4ALL.

The ACM carried out its investigation into the takeover, saying it feared the deal could lead to limits in the number of budget phone firms, which would then force prices up.

Odido (formerly T-Mobile) is the largest mobile phone company in the Netherlands, followed by former state phone firm KPN and VodafoneZiggo.