The European Commission's Decision in Telefónica Deutschland/E-Plus

Maier-Rigaud, Frank and Ulrich Schwalbe (2015) The European Commission's Decision in Telefónica Deutschland/ E-Plus, Wirtschaft und Wettbewerb, 07/08, 733-736.

5 Pages Posted: 11 Jul 2015 Last revised: 23 Jul 2015

See all articles by Frank P. Maier-Rigaud

Frank P. Maier-Rigaud

ABC economics; IESEG School of Management (LEM-CNRS), Department of Economics and Quantitative Methods

Ulrich Schwalbe

University of Hohenheim

Date Written: July 9, 2015

Abstract

The article critically examines the European Commission’s decision in the four-to-three merger between Telefónica Deutschland and E-Plus. Despite the explicit recognition of the importance of vertical effects in the telecommunications sector more generally as exemplified by the European Commission’s past antitrust enforcement record also held up by the European Courts and as also explicitly acknowledged in the context of the Telefónica/E-Plus transaction itself, the decision does not contain any vertical effects analysis. Only the analysis of possible vertical effects such as raising rivals cost or vertical foreclosure would have allowed assessing the transaction in line with the Commissions own merger guidelines. That the Commission recognizes the importance of vertical effects in the decision but then provides no analysis of these effects is an omission reminiscent of Schneider/Legrand.

Keywords: mobile telecommunication, EU merger control, Telefónica Deutschland, E-Plus, four-to-three merger, clearance decision, Schneider/Legrand, raising rivals cost, vertical effects, foreclosure, MVNO remedy, MBA remedy

JEL Classification: K21, L40

Suggested Citation

Maier-Rigaud, Frank P. and Schwalbe, Ulrich, The European Commission's Decision in Telefónica Deutschland/E-Plus (July 9, 2015). Maier-Rigaud, Frank and Ulrich Schwalbe (2015) The European Commission's Decision in Telefónica Deutschland/ E-Plus, Wirtschaft und Wettbewerb, 07/08, 733-736., Available at SSRN: https://ssrn.com/abstract=2628787

Frank P. Maier-Rigaud (Contact Author)

ABC economics ( email )

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Germany
10115 (Fax)

HOME PAGE: http://www.ABCecon.com

IESEG School of Management (LEM-CNRS), Department of Economics and Quantitative Methods ( email )

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Ulrich Schwalbe

University of Hohenheim ( email )

Schloss Hohenheim
Stuttgart, 70593
Germany
+49 (0)711 45922992 (Phone)

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