News

Google, PayPal Blow The Whistle On U.K. Joint Venture

Google and PayPal are among several companies warning European regulators about the consequences of approving the business plan of a joint venture between a trio of Euro-based telecom giants.

Vodafone, Telefonica and Everything Everywhere — itself a joint product of Deutsche Telekom and France Telecom — have been working for months to unite under a common mobile payment effort, with the working title of “Project Oscar.” The players had hoped to launch prior to the 2012 Olympic Games, but the European Commission halted the effort’s momentum.

This week, a new report from the Financial Times shows that several major U.S.-based payments players are voicing strong opinions directly to the EC.

“US tech groups such as Google Wallet, PayPal and IBM are concerned about the market power that could potentially be gained by rivals controlling the use of a key microchip,” write FT’s Alex Barker and Daniel Thomas. “These commercial fears were expressed in confidence to the Brussels team that will recommend whether to approve the joint venture.”

Read the full story here. (Registration at Financial Times required.)

Click to comment

TRENDING RIGHT NOW