2001/98/EC: Commission Decision of 13 October 1999 declaring a concentration to be compatible with the common market and the EEA Agreement (Case IV/M.1439 Telia/Telenor) (Text with EEA relevance.) (notified under document number C(1999) 3314)

Article 2
This Decision is addressed to:
Telia AB (publ) Mårbackagatan 11 S - 123 86 Farsta Sweden
and
Telenor AS PO Box 6701, St Olavs plass N - 0130 Oslo Norway
Done at Brussels, 13 October 1999.
For the Commission
Mario Monti
Member of the Commission
(1) OJ L 395, 30.12.1989, p. 1; corrected version OJ L 257, 21.9.1990, p. 13.
(2) OJ L 180, 9.7.1997, p. 1.
(3) OJ C 43, 9.2.2001.
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(6) Case IV/M.1069, decision of 8 July 1998.
(7) See, for example, Commission Decision 96/546/EC (Case IV/35.337 - Atlas) (OJ L 239, 19.9.1996, p. 23), and Decision 96/547/EC (Case IV/35.617 - Phoenix/GlobalOne) (OJ L 239, 19.9.1996, p. 57).
(8) The point where the twisted copper pairs are brought together at the local exchange, and from where switching can take place, is usually referred to as the main distribution frame.
(9) In traditional switched telephony over copper lines, the voice path would require a completed electrical circuit between the two subscribers. With fibre-optic cables, satellite or radio links, there may no longer be a complete electrical circuit, as some components of the voice path may be light pulses, radio waves, etc.
(10) The precise architecture of the system, and the terminology, may vary from network to network and country to country.
(11) The precise rate, usually expressed in SDR (special drawing rights) might vary depending on the time of day at which the call was made.
(12) In this context an "end-to-end" service is one where all the network elements between the subscriber making the call and the subscriber receiving the call are owned by, or under the control of, the same operator.
(13) Some types of data network, such as Frame Relay and X25, are "connection oriented", in that a connection is set up before a data transmission begins. To that extent they share some features of traditional circuit-switched telephony.
(14) The points where network connections intersect with one another.
(15) There are a number of variants of DSL technology such as ADSL (asymmetric digital subscriber line), HDSL (high data rate digital subscriber line) and VDSL (very high data rate digital subscriber line). They are collectively referred to as "xDSL" technologies.
(16) A number of segmentations are possible depending on the types of users (e.g. private and business segments, and urban and rural segments). For the purpose of the present assessment such further segmentations are not necessary as they would not affect the outcome. However, such segmentations might however be relevant to consideration of any measures which might be offered to remedy the effects of the concentration, as different types of remedy might have different impacts on different types of consumer group.
(17) In some countries certain telephone offerings usually charged on a usage basis are offered free, such as local calls. This does not however apply in the countries under discussion in this assessment.
(18) Integrated services digital network - a type of network based on the existing digital PSTN which provides digital links to customers and end-to-end digital connectivity between them.
(19) Case IV/M.1069 (OJ L 116, 4.5.1999, p. 1, at recitals 44 to 46).
(20) Case IV/JV.1 - Telia/Telenor/Schibsted.
(21) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(22) For the sake of convenience the notified operation is sometimes referred to as a merger, although within the terms of the Merger Regulation it is technically a joint venture.
(23) OJ L 199, 26.7.1997, p. 32.
(24) OJ L 268, 3.10.1998, p. 37.
(25) Telia Norge is active in Norway in the provision of domestic and international voice and data communications services.
(26) Telenordia is a joint venture between Telenor, BT and TeleDanmark (see Case IV/M.570 - TBT/BT/Tele-Danmark/Telenor, Commission Decision of 24 April 1995; OJ C 154, 21.6.1995, p. 4). It provides domestic and international voice telecommunications in Sweden as well as enhanced global services (through Concert).
(27) By making it difficult for an entrant in, say, Sweden to get call termination in Norway except at high prices or low quality, the Norwegian incumbent would have been able to disadvantage potential competitors operating out of Sweden who would otherwise have been unaffected by the interconnection prices of the Swedish incumbent. The fact that such behaviour would have led to retaliatory action would have constrained the two incumbents from developing such a strategy. After the merger the only constraint which prevents them from behaving in this way is the constraint provided by regulation.
(28) The same argument applies to every competitor servicing international calls between Norway and Sweden. It applies twice to competitors offering international calls both ways.
(29) This is so because access to the local loop, and thus the need for interconnection, is an essential element of all telephony offerings.
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(32) See judgment of 25 March 1999 in Case T-102/99 - Gencor Ltd v Commission, at paragraphs 317 to 319; not yet published in the ECR.
(33) See section II on television services; recitals 261 and following.
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(42) A report by Price Waterhouse Coopers to the PTS (Swedish telephone regulatory authority).
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(47) In a later submission the parties quoted a figure of [0 % to 10 %](48)(48) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
by call minutes and [0 % to 10 %](49)(49) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
by revenue reflecting the shares at the end of 1998. However, the argument is not substantially affected by whether the later or earlier figures are taken.
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(51) Although the increments of market share which would accrue to the merged entity in Norway and Sweden are very small, they would represent the disappearance of a substantial proportion of the small slice of market share not already in the incumbent's control.
(52) Competitors offering local calls would be more or less affected by the parties' increased ability to raise rivals' costs depending on whether they offered domestic services in only one country or in both, or whether they offered domestic and international services in one country or both, or any combination of these services.
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(71) It should be noted that Telia owns cables between Sweden and Denmark which, according to third parties, have sufficient capacity for taking all Telia/Telenor traffic to Denmark and in addition, Telia owns whole circuits running from Sweden to Finland and Sweden to Norway.
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(98) Commission decision in the WorldCom/MCI case, referred to in recital 106.
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(223) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(224) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(225) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(226) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(227) Case IV/36.237 - TPS; decision of 3 March 1999; OJ L 90, 2.4.1999, p. 6.
(228) Small Master Antenna TV.
(229) OJ L 364, 31.12.1994, p. 1.
(230) OJ L 53, 2.3.1996, p. 20.
(231) On 27 August 1999 Telia announced an agreement with HSB Malmö, by which it will connect 34000 apartments to a broadband solution including high-speed Internet, telephony, mobile telephony and digital TV services.
(232) Telenor leases all available transponders on the Intelsat satellite at 1° west.
(233) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(234) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(235) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(236) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(237) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(238) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(239) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(240) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(241) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(242) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(243) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(244) When Telia evaluated its various options for DTH transmission, it concluded that it could only use the GEAmericom transponders if it were to lease all thirteen transponders, since the entire beam would have to be redirected towards the Nordic region.
(245) According to information on Telenor's home page, Thor IV may be launched by 2000 or 2001.
(246) This matter has been brought to the attention of the Swedish Competition Authority, case number Dnr 353/1999. No decision has been adopted at this stage.
(247) Canal Digital's home page contains the following statement: "All channels that we distribute can be received from one and the same satellite position. This means that you do not have to install multiple microwave heads on your dish."
(248) Netcom, MTG and Kinnevik are quoted separately on the Stockholm Stock Exchange, while Netcom and MYG are also separately quoted on NASDAQ. The Commission has been informed that maintaining those separate listings requires the companies to comply with Stock Exchange requirements as to independent management and arm's length dealing. Nevertheless, the parties have assumed that the Netcom and MTG should be seen as a group for the purposes of this assessment, given that Kinnevik (the Stenbeck family) has significant interests in both companies. For the purposes of this decision the Commission has followed this assumption, which is the one most favourable to the notifying parties. (The telephony interests of Netcom/Tele2 are described under the section dealing with such services.)
(249) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(250) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(251) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(252) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(253) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(254) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(255) According to Telia, [...](256)(256) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
Swedish households (of a total of 3980000) are passed by its cable network, i.e. are located within 50 metres of the cable.
(257) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(258) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(259) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(260) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(261) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(262) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(263) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(264) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(265) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(266) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(267) Telia's plans for launching DTH transmission will be explained later.
(268) Telenor plans to launch digital services in its cable-TV network next year.
(269) 5 July 1999.
(270) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(271) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(272) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(273) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(274) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(275) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(276) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(277) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(278) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(279) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(280) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(281) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(282) All of the alternative sources have indicated a smaller total market than that indicated by the parties. Consequently, the parties' estimate tends to understate their combined market position, relative to that which would appear using any of the alternative sources (by up to 10 %). However, for the purposes of this Decision it is sufficient to indicate the figures provided by the parties.
(283) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(284) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(285) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(286) Neither party has significant activities in Finland. However, given the relative size of Finland compared with the three Scandinavian countries, the parties' share of the Nordic market would remain [40 % to 50 %](287)(287) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk..
(288) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(289) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(290) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(291) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(292) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(293) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(294) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(295) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(296) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(297) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(298) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(299) The parties (as well as other distributors) will continue to offer a "basic tier" in the digital environment.
(300) Aftonbladet, 1 September 1999.
(301) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(302) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(303) In their Reply, the parties have pointed out that since May 1999 Eurosport Nordic is carried in Telia's "basic tier", as a consequence of a new agreement, which, however, is of limited duration ([...](304)(304) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.).
(305) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(306) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(307) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(308) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(309) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(310) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(311) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(312) Telia has not indicated the number of households that receive services through its wholesale activities.
(313) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(314) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(315) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(316) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(317) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(318) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(319) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(320) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(321) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(322) Directive 95/47/EC of the European Parliament and of the Council of 24 October 1995 on the use of standards for the transmission of television signals (OJ L 281, 23.11.1995, p. 51); ("the Directive") states that operators of conditional access systems must offer non-discriminatory access to all broadcasters. It is to be noted that the advantages available to Newco by imposing its technology as a de facto standard, would, in no way, require it to act in breach of the Directive.
(323) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(324) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
(325) Following the Commission's evaluation, the parties made a number of technical clarifications of their proposals on 1 October 1999. The term "final proposal" is used to describe the undertakings submitted on 17 and 24 September 1999, including the clarifications of 1 October 1999.
(326) OJ L 61, 2.3.1998, p. 1.
(327) Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk.
Cite this act
