WEEK 8 – MERGER CONTROL
READING
Literature
Kaczorowska, European Union Law (2013), Chapter 29: Merger control (available online via University
Library > Catalogue)
Legislaton and cases
Council Regulaton (EC) No 139/2004 of 20 January 2004 on the control of concentratons between
undertakings (Merger Regulatio)
Case COMP/M.7217 Facebook / WhatsApp
Taylor Wessing ‘Court upholds Commission's GE/Honeywell merger decision’
QUESTION 1
The mobile network market is experiencing increasing competton across Europe due to regulatory
interventons to lower entry barriers, including more equal allocaton of spectrum over which mobile
companies supply their services. Accordingly, the industry has entered into a period of consolidaton in order to
deal with increased competton. Suppose that two large European mobile phone and internet service
companies, WideNet and GoMobile, decide to merge in order to increase their compettveness.
WideNet has an expansive 4G data network in Spain, France and Portugal (along with smaller networks in other
European countries), whereas GoMobile has a substantal spectrum holding in Spain, France and the
Netherlands. By merging their operatons, the companies believe that they can more optmally use these
resources.
The companies sign an agreement to merge together into a new company, GoNet!. During the fnancial year in
2017, WideNet had a turnover of €12 billion in Europe, while GoMobile had a turnover of €3 billion. The
companies’ market shares in each of the relevant countries is as follows:
WideNe
t GoMobile
Spain 42%
18%
France 41%
10%
Portugal 24%
0%
READING
Literature
Kaczorowska, European Union Law (2013), Chapter 29: Merger control (available online via University
Library > Catalogue)
Legislaton and cases
Council Regulaton (EC) No 139/2004 of 20 January 2004 on the control of concentratons between
undertakings (Merger Regulatio)
Case COMP/M.7217 Facebook / WhatsApp
Taylor Wessing ‘Court upholds Commission's GE/Honeywell merger decision’
QUESTION 1
The mobile network market is experiencing increasing competton across Europe due to regulatory
interventons to lower entry barriers, including more equal allocaton of spectrum over which mobile
companies supply their services. Accordingly, the industry has entered into a period of consolidaton in order to
deal with increased competton. Suppose that two large European mobile phone and internet service
companies, WideNet and GoMobile, decide to merge in order to increase their compettveness.
WideNet has an expansive 4G data network in Spain, France and Portugal (along with smaller networks in other
European countries), whereas GoMobile has a substantal spectrum holding in Spain, France and the
Netherlands. By merging their operatons, the companies believe that they can more optmally use these
resources.
The companies sign an agreement to merge together into a new company, GoNet!. During the fnancial year in
2017, WideNet had a turnover of €12 billion in Europe, while GoMobile had a turnover of €3 billion. The
companies’ market shares in each of the relevant countries is as follows:
WideNe
t GoMobile
Spain 42%
18%
France 41%
10%
Portugal 24%
0%
