Hong Kong’s competition watchdog has accepted commitments by China Mobile Hong Kong regarding its proposed acquisition of broadband provider HKBN Ltd and won’t pursue an investigation, clearing the way for the merger to proceed.

The planned deal, announced by China Mobile Hong Kong in December, was scrutinized by the Communications Authority under the Competition Ordinance because of its potential impact on market competition.

ALSO READ: I Squared Capital weighs up to $1b bid for HKBN, sources say

The authority conducted an assessment and identified concerns, particularly regarding the fixed local access network, which could have been negatively affected by the acquisition.

In response, CMHK submitted a set of proposed commitments to the authority last month. Officials sought further feedback from industry players and other interested parties.

During the consultation period, the issue of mobile backhauls, which refers to the infrastructure that allows data from mobile devices to be transmitted from the internet and other networks, was raised by the industry. As a result, CMHK revised its commitments.

READ MORE: China Mobile denies reports of HKBN buyout

The authority determined the changes were sufficient to address potential competition issues arising from the merger, it said in a statement on Friday.

China Mobile has been actively engaging with the authorities to satisfy the pre-conditions for the deal.