EC Clears the Creation of a Joint Venture by European Telecom Operators

The European Commission has approved unconditionally the creation of a joint venture by Deutsche Telekom, Orange, Telefónica, and Vodafone. The EC concluded that the transaction would raise no competition concerns in the European Economic Area (‘EEA').

The joint venture will offer a platform to support brands and publishers' digital marketing and advertising activities in France, Germany, Italy, Spain, and the UK. Subject to the user's consent, the joint venture will generate a unique digital code derived from the user's mobile or fixed network subscription. Such code will allow brands and publishers to recognize users on their websites or applications on a pseudonymous basis, group them under different categories and tailor their content to specific user groups.

Based on its market investigation, the Commission found that the transaction, as notified, would not significantly reduce competition in French, German, Italian, and Spanish markets for the supply of digital identification services for targeted advertising and/or site optimization, the retail supply of mobile telecommunications services, the retail supply of fixed internet access services, the retail supply of AV services, and the supply of online advertising space. The EC concluded that the transaction would raise no competition concerns in the EEA and cleared the case unconditionally. During its investigation, the Commission has been in contact with data protection authorities. Data protection rules are fully applicable, irrespective of the merger clearance.