The European Commission will announce its decision on March 13th on whether the proposed takeover of Esat Telecom by British Telecom (BT) is contrary to EU competition regulations.

An objection has been lodged with the Commission's merger task force unit by Eircom, which is arguing that the $2.5 billion (#2.6 billion) will lead to BT holding a dominant position in the international services market.

An Esat spokesman said it did not want to comment on the move by the former semi-State. "It's in the EU's court. If Eircom wants to complain that is its prerogative. We will proceed with our agreed timeframe."

A spokesman for the Commission said it had been informed by both parties of the agreement and that submissions would be allowed up to March 13th, on which date the Commission's decision would be announced. He said the Commission would not comment on whether complaints had been received. Eircom remains the largest player by far in its home market.