Background
Acquisition by Siemens of control of parts of Italtel. Siemens is a German-based global provider of electronic engineering and electronic products and services. Italtel is an Italian manufacture of telecom equipment and systems. In 1994, Telecom Italia and Siemens created a joint venture to become a major international supplier to the telecom industry. The respective Italian activities all merged into Italtel. Now, the parties have agreed to divide Italtel and its subsidiaries along the lines it is currently operating: the area of fixed networks will become solely controlled by Telecom Italia, while the area of transport and mobile networks will become solely controlled by Siemens. According to the Commission, only the latter concentration falls under the scope of the Merger Regulation.
Assessment
The Commission stated that in consequence of the dissolution of the joint venture, Siemens and Telecom Italia will develop their business separately in the future and strengthen their competitiveness in the call competencies in taking over the respective lines of Italtel. It therefore concluded that the dissolution of the joint venture does not raise anti-competitive concerns and cleared the operation. (Case n° COMP/M.1717, Decision of 15 December 1999).
