German regional player Airdata filed an official challenge with the European General Court over Telefonica’s $9.6 billion acquisition of E-Plus in Germany, which was completed last year.
The deal, which was approved by the European Commission in July 2014, reduced the number of operators in Germany from four to three.
Airdata released a statement yesterday, arguing that the remedies made by Telefonica to get the green light were insufficient to warrant reducing the number of operators in the country, claiming there was no fair competition in the German market.
Airdata said Deutsche Telekom, Telefonica and Vodafone Germany were now able to dictate prices, pointing to the Austrian market as an example, where prices rose by 30 per cent following Hutchison Whampoa’s takeover of Orange.
Telefonica said last year it would open a fifth of its combined network to MVNO Drillisch, and also sell 10 per cent of its network capacity to the company, as a way to convince regulators to approve the deal. Drillisch’s prices have however kept pace with its larger network rivals.
Airdata’s CEO, Christian Irmler, said the EC should not have approved the takeover because “the commitments made by Telefonica were totally insufficient to ensure lively competition in the interests of consumers”.
According to Reuters, Telefonica said it was aware of the complaint, and that it would not have an immediate effect on its operations.
Full content: Reuters
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI