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 newsletter!

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

Tags governmentTelefónicaPortugal Telecom

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

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?