Editor's Note: This note is based on European Commission decision EC Case COMP/M.2130, Belgacom/Teledanmark/T-Mobile Intl./Ben. Click here to access the decision.
On August 28 2000, Belgacom, T-Mobile International, and Tele Danmark applied for permission to share control of the Dutch company Ben Nederland Holding (“Ben”), a joint venture offering mobile telephony services between Belgacom and Tele Danmark. At that time, Belgacom was the principal telecommunications provider in Belgium, Tele Danmark the principal telecommunications provider in Denmark, and T-Mobil International a mobile telephony service provider and subsidiary of Deutsche Telecom. Ben was to become a “full function joint venture” and function as an autonomous economic entity.
The European Commission (EC) first determined that the community dimension (measured by aggregate revenue turnover) did not exceed more than two thirds of the total community revenue in any given member state. Furthermore, all parties and the EC agreed that the relevant market was for mobile telephony services and national in scope. Given this market definition, the EC found no likely impediment to effective competition from the joint venture. Finally, in addition to KPN Telecom and Ben, the EC identified three other competitors holding 3G mobile licenses within the Netherlands. Hence, the new concentration of market share due to the joint venture did not create or strengthen a dominant position.
The EC approved the joint venture on September 25 2000 subject to non-compete restraints: Belgacom, T-Mobile, and Tele Danmark had to refrain from any equity (direct or indirect) or management participation in any competitor to Ben.