Following a Phase-II investigation, the European Commission (“EC”) unconditionally cleared the acquisition by T-Mobile NL, the Netherlands’ third largest mobile network operator (“MNO”), of its smaller rival Tele2 NL. The EC’s decision marks the first unconditional clearance of a 4-to-3 merger between MNOs since the start of the current industry consolidation wave in 2012.
Compass Lexecon experts advised Deutsche Telekom and T-Mobile NL during the merger control proceedings. They developed and presented to the EC a number of economic analyses to assess the likelihood of unilateral effects in the mobile retail market (the EC’s main focus of concern) and merger-specific efficiencies. Inter alia, they prepared a merger simulation analysis that took into account the competitive interaction between mobile-only tariffs and multiple-play products, as well as the cost and quality efficiencies generated by the transaction.
The Compass Lexecon team included Enrique Andreu, Miguel de la Mano, Thilo Klein, and Alejandro Requejo, assisted by Francisco Franchetti, Scott Holbrook, Patricia Lorenzo, and Cecilia Nardini. Compass Lexecon worked alongside Mark Powell, Kasia Czapracka, and Alexandra Rogers of White & Case.