European Commission Opens An In-Depth Investigation Over Proposed UK Mobile Payment Standard Joint Venture

Posted on Apr 17 2012 - 5:58am by Editorial Staff

The proposed creation of a joint venture between UK’s Vodafone, Telefónica and Everything Everywhere in the field of mobile commerce seems have to wait for a bit as the European Commerce has opened an in-depth investigation under the EU Merger Regulation. The Commission’s preliminary investigation indicated potential competition concerns in the nascent markets of mobile payment applications supply, mobile advertising and related data analytics services.

“The Commission is in favour of any initiative that will develop the promising mobile commerce sector in Europe and bring new and innovative payment and interactive advertising experience to consumers. At the same time, we need to make sure that competing services can keep emerging on this market, so that incentives to innovate remain and customers get the best mobile commerce services at the best cost.” said Joaquín Almunia, Commission Vice President in charge of Competition policy.

The Commission’s initial investigation revealed that the joint venture and its three parent companies may have the technical and commercial ability and incentive to block future competitors from offering their own mobile wallet services to customers in the UK. The Commission now has 90 working days, until 27 August 2012, to take a final decision on whether the proposed transaction would reduce effective competition in the European Economic Area (EEA).

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.