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Significant price-increase: BWB examines telecom sector

On 12 December 2012, the European Commission has approved the acquisition of the mobile phone company Orange by Hutchison 3G, subject to conditions.

On 12 December 2012, the European Commission has approved the acquisition of the mobile phone company Orange by Hutchison3G, subject to conditions. 

After the reduction of the market from four to three participants, there were subsequently significant price increases in theAustrian mobile market (Source: RTR Telecom Monitor 1/2014). Also, EU Competition Commissioner Joaquin Almuniaadmitted errors, that the European Commission "in the case of Austria in 2012 has provided no previous commitments". This had been possible before the takeover was complete various operations. "That was a mistake on our part. I am not satisfied with whatis on the Austrian market", said Almunia on. 

Due to these negative developments, it became necessary to take the highly concentrated market more closely and undergo a thorough inspection. 

This general survey of the telecommunications industry is to ensure that

  • Consumers are not disadvantaged by (antitrust) unlawful conduct
  • suspected or threat of distortion or restriction be fought
  • free, fair and transparent competition is guaranteed.

Since the issue is not only competition law but, at a macroeconomic view, also relates to other legal matters, it was for the BWBimportant to achieve a broad collaboration of interested authorities and institutions in the interest of all market participants, so that the BWB for this project won the Federal Cartel Prosecutor, the Chamber of Labour, the consumer Association and the RTR.

Following constructive discussions with the participants as well as the establishment of a common roadmap first substantivereactions have already been carried out. Currently, the necessary information is requested from the operators which allow to give a closer insight into the processes and consequences resulting from the development of the telecom market.