EC: Telefonica Germany breached E-Plus deal obligations

Friday, 22. February 2019 13:16

The European Commission accused Telefonica Germany GmbH & Co. OHG of breaching commitments it took up to secure the regulator's approval for the acquisition of E-Plus in 2014.

Out of the three obligations it was required to fulfill, the telecommunications giant failed to "to offer wholesale 4G services to all interested players at 'best prices under benchmark conditions.'" The commission states Telefonica did not include certain existing wholesale agreements in the benchmark, resulting in less "advantageous 4G wholesale access conditions."

"Commitments from the parties in merger decisions are crucial to ensure that effective competition is maintained after a merger or takeover so that there is no harm to consumers. We need full compliance and take very seriously any case where companies may have failed to comply with their commitments, which is why we have sent today's statement of objections," European Commissioner for Competition Margrethe Vestager (pictured) said.

If the regulator concludes Telefonica failed to honor its commitment, it could impose a fine of up to 10% of the company's annual worldwide revenue or revoke its acquisition approval. Telefonica was given until April 5th to respond to the allegations.

Related Links: Telefónica Deutschland Holding AG
Author:
Breaking the News / MD