MERGERS: COMMISSION CLEARS THE ACQUISITION OF ČESKÝ TELECOM BY TELEFÓNICA
Brussels, 14 June 2005 - The European Commission has approved under the Eu Merger Regulation the proposed acquisition of Czech fixed and mobile telecommunications operator Český Telecom by the Spanish telecommunications operator Telefónica. The Commission concluded that the transaction will not significantly impede effective competition in the Eea or any substantial part of it. Telefónica is a global telecommunications operator active in various segments of the telecommunications services market. Český Telecom is the incumbent fixed telecommunications operator in the Czech Republic. It is also active in the mobile telecommunications services market in the Czech Republic through its subsidiary Eurotel. The Commission’s examination of the transaction showed that there are no horizontal overlaps between the activities of the parties in their respective countries. Furthermore, the transaction does not raise any substantial vertical competition concerns in the Spanish and Czech markets for wholesale international roaming and fixed and mobile telecommunications. As regards Telefónica’s intention to integrate Eurotel in Freemove, the recently formed international alliance for the provision of pan-European advanced mobile telecommunication services, the Commission concluded that, in spite of the fact that another Czech mobile operator (T-mobile) is also a member of Freemove, the rules governing this alliance will ensure that effective competition will be maintained following the proposed transaction.
