A PYMNTS Company

Commission clears Vodafone-CWW merger, finding complementary markets

By  |  July 3, 2012

The European Commission has approved Vodafone’s proposed acquisition of Cable & Wireless Worldwide Plc (CWW). Serious competition concerns were not flagged by the Commission, who found that the companies operate in complementary markets. CWW is active in the fixed telecoms market; Vodafone’s activities are concentrated in mobile telecoms.

Although the two companies’ activities overlap in the U.K., the merged entity’s impact on the market would be small, given the number of strong competitors. The parties’ small market power also sufficiently prevents it from using the vertical links created by the transaction to exclude competitors for bundled fixed-mobile services.

Full content: EC Press Release

 

Related content: Predation, Exclusion, and Complement Market Monopolization

 

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.