Telefonica Risks Fine or E-Plus Deal Unraveling in EU Probe (1)

Telefonica SA risks a potential fine and the unraveling of a deal that made it one of Germany’s biggest mobile-phone carriers after European Union merger regulators said they suspect it broke a promise to ensure fair competition.

The European Commission could ultimately fine the company’s German unit Telefonica Deutschland up to 10 percent of its global annual revenue or “revoke the decision” allowing the E-Plus tie-up, it said in an emailed statement. It sent Telefonica antitrust objections alleging it violated commitments that allowed the EU to clear the takeover in 2014.

Telefonica vowed to bolster smaller rivals and divest spectrum ...