EU launches probe into Telefónica, Portugal Telecom deal

The European Commission investigates with noncompete agreement breaches EU law

The European Commission on Monday launched an investigation into a Telefónica deal with Portugal Telecom over concerns that the agreement breaks competition rules.

The Commission will examine whether an agreement between the two operators not to compete with each other in their home markets contravenes European Union laws that ban anticompetitive business practices.

The agreement came about last year when Telefónica acquired sole control over Brazilian mobile operator Vivo, previously held jointly with Portugal Telecom. Telefónica and Portugal Telecom agreed not to compete in the Spanish and Portuguese telecom markets until the end of 2011.

The E.U.'s Article 101 prohibits agreements and concerted practices that "may affect trade and have as their object or effect the prevention or restriction of competition."

The Commission will also examine cooperation between the companies prior to the Vivo deal. In 1997, Telefónica and Portugal Telecom signed a cooperation agreement concerning markets outside the E.U. The new probe will investigate whether that agreement affected E.U. markets, in particular Spain and Portugal.

Telefónica bought Portugal Telecom's stake in Vivo for €7.5 billion (US$10.2 billion) after increasing its original offer three times from its initial bid of €5.7 billion in May 2010. The takeover itself is not part of the current investigation.

There is no legal deadline for the Commission to complete inquiries into anticompetitive conduct.

Follow Jennifer on Twitter at @BrusselsGeek or email tips and comments to jennifer_baker@idg.com.

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Portugal TelecomgovernmentTelefónica

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jennifer Baker

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?