BRUSSELS (Reuters) - European Union antitrust regulators launched a full-scale investigation into a proposal by Norwegian telecoms company Telenor (>> Telenor ASA) and Swedish peer TeliaSonera (>> TeliaSonera AB) to combine their Danish mobile businesses, saying the deal may lead to higher prices.

The European Commission said the merged company and rivals former Danish telecoms incumbent TDC (>> TDC A/S) and Hutchison Whampoa-owned (>> Hutchison Whampoa Limited) Hi3G would have a reduced incentive to compete.

"My aim is to make sure that the proposed transaction will not lead to higher prices to Danish consumers and businesses," said European Competition Commissioner Margrethe Vestager, who is Danish.

The EU competition authority will decide by Aug. 19 whether to clear or block the deal.

(Reporting by Foo Yun Chee; editing by Philip Blenkinsop)

Stocks treated in this article : Hutchison Whampoa Limited, TDC A/S, Telenor ASA, TeliaSonera AB