Austria’s competition regulator will object to Telekom Austria’s proposed acquisition of budget brand YESSS from Orange Austria, according to Austrian newspaper Wirtschaftsblatt.

A Bundeswettbewerbswehorde (BWB) spokesman told the newspaper that the watchdog will appeal the decision by Austria’s cartel court in November to approve the deal. He said that the merger of YESSS and Telekom Austria would lead to “considerable disadvantages for consumers and does not promote competition but rather hinders it”.

However, a BWB spokeswoman said no official decision had been made regarding an appeal.

If the BWB’s objections are upheld, it could put the related deal for Hutchison Whampoa’s 3 Austria to buy Orange Austria for EUR1.3 billion at risk.

The sale of YESSS to Telekom Austria was a condition of the 3 Austria-Orange deal, which in turn is awaiting approval from the European Union. A deadline of 21 December has been set for a decision by the EU to be made.

Even if the BWB’s appeal is unsuccessful, it would delay final approval of the deal beyond 31 January, when the Telekom Austria-YESSS deal expires.

The acquisition of YESSS would bring Telekom Austria’s market share up to 47 percent from the current 45 percent. The cartel court said this increase in market share would not make Telekom Austria market-dominant.

Since Telekom Austria agreed to pay EUR390 million for YESSS it has issued profit warnings and cuts its dividend twice to conserve cash.