Deutsche Telekom says EU raises concerns over Tele2's Dutch deal

FRANKFURT (Reuters) - Deutsche Telekom <DTEGn.DE> said on Thursday that the European Commission had raised competition concerns about the effect of its planned purchase of the Dutch operations of Sweden's Tele2 <TEL2b.ST> on the mobile retail market.

"The Commission is arguing that the combination of number 3 (T-Mobile NL) and number 4 (Tele2 NL) is likely to lead to price increases," Deutsche Telekom said in a statement, adding the companies involved disagreed with the Commission's concerns.

It said the companies would continue a constructive dialogue with the Commission and that they remained confident that the merger would be approved towards the end of the year.

(Reporting by Maria Sheahan; editing by Thomas Seythal)