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Telefonica’s takeover of KPN’s German carrier E-Plus has moved closer to finalization after the European Commission gave its blessing on Wednesday. However, the Commission’s approval is highly conditional – because the merger will reduce the number of network-owning German operators to three, Telefonica would need to sell 30 percent of the merged company’s network capacity to small virtual operators. It would also need to sell a new player some of its spectrum and other assets, and offer wholesale 4G services to “all interested players,” in order to preserve competition in the German market.