The European Commission has approved the participation of STET International Netherlands b.v. ("SIN"), belonging to the Italian TI-Group, in the Austrian telecommunication company Telekom Austria AG ("Telekom"). The Post and Telekom Austria AG ("PTA") is at present the only parent of Telekom and will control the company after the concentration. The TI-Group has already since one year joint control in the mobile telephone company of Telekom ("Mobilkom"). This concentration will not lead to the creation or reinforcement of a dominant position on the market.

Telekom is the telecommunication company of PTA and offers a comprehensive catalogue of telecommunications services. Apart from mobile telecommunications services through Mobilkom, they include fixed line telephony, data services, online services, consulting and engineering in telecommunications, as well as the publication of telephone indexes in the framework of a legal universal obligation in Austria.

The TI-Group is so far - apart from its participation in Mobilkom - not active in Austria in these areas. Since the TI-Group has already joint control in Mobilkom, a controlling participation in the parent company Telekom does not lead to a further market share addition in this area in Austria. On the basis of the European market the combined market shares of the parties represent less than 12% compared with Deutsche Telekom 26%, France Telecom 16% and British Telecom 13%. Therefore there will be no risk of dominant position. The telecommunication sector is an expanding market.

For these reasons, the Commission decided not to raise objections to the proposed concentration and to declare it compatible with the Common Market.

Source:
RAPID
17 / 12 /1998