commiss decis april declar compat common market concentr case iv mo alcatel telettra council regul eec english text authent eec commiss european commun regard treati establish european econom commun regard council regul eec decemb control concentr undertak articl thereof regard commiss decis januari initi proceed case undertak concern opportun make view oblig propos commiss consult advisori committe concentr fact natur proceed proceed concern propos concentr notifi decemb pursuant articl council regul eec consist acquisit alcatel nv alcatel fiat spa fiat control interest share telettra spa telettra telettra turn acquir alcatel face spa subsidiari alcatel fiat telettra balanc share telettra own spanish telecommun oper telefonica de españa telefonica parti alcatel own alcatel alsthom compagni générale electricité alcatel alsthom cge alcatel princip supplier telecommun system equip worldwid turnov ecu billion alcatel alsthom consolid worldwid turnov ecu billion balanc deriv energi transport nuclear electr engin batteri sector commun wide turnov alcatel alsthom ecu billion third achiev member state telettra princip supplier telecommun system equip worldwid turnov ecu billion ecu billion aris commun third commun wide turnov achiev member state context agreement agreement acquisit control telettra compon accord cadr enter fiat alcatel alsthom compon accord cadr acquisit magneti marelli subsidiari fiat control interest alcatel alsthom batteri subsidiari ceag propos concentr subject complet alcatel telettra agreement notifi dealt separ case iv plan acquisit control interest fiat railwai equip subsidiari fiat ferroviaria gec alsthom jointli control gec alcatel alsthom creation european hold compani jointli own fiat alcatel alsthom intent develop initi mutual interest research develop compon accord cadr fall separ assess regul eec articl eec treati affect product market product market telecommun system equip sector affect concentr public switch line transmiss system microwav system privat switch market repres total telecommun equip market ecu billion commun includ telecommun equip area radiotelephoni subset earth station telecommun cabl term import telecommun market market public switch ecu billion repres total telecommun equip market year market line transmiss system ecu billion privat switch ecu billion microwav system ecu billion market share parti main competitor product market reproduc annex public telecommun equip market telecommun equip suppli industri character steadili increas high level amp expenditur due increas softwar content telecommun product shorten product life cycl technic telettra fit alcatel exist product base acquisit alcatel access telettra cross connect technolog public switch line transmiss equip microwav equip larg public telecommun equip market telecommun oper import custom spanish telecommun oper telefonica buyer spain public switch bui line transmiss equip microwav equip member state public telecommun oper principl oper diversifi supplier polici aim strike balanc creat maintain competit supplier hand minimis cost aris product differ hand public switch gener consid feasibl supplier high cost technic complex type equip transmiss equip gener term usual supplier practic limit number sustain procur practic vari oper categori equip principl base combin negoti contract tender procur practic commun telecommun oper evolv tradition member state public network oper state own telecommun author gave order telecommun equip small group nation supplier accompani specif nation technic standard creat adapt cost domest supplier actual pace chang procur polici vari significantli member state context process liber deregul telecommun sector initi framework achiev singl market commiss direct liber telecommun servic aim creat competit break monopoli network oper provis servic suppli side direct public procur mutual recognit termin type approv aim open market competitor member state effort achiev commun wide standard telecommun equip framework european telecommun standard institut etsi anticip applic provis council direct eec public procur contribut break tradit nation base bui polici telecommun oper member state implement direct januari except spain implement januari greec portug januari standard product market consider etsi set plan issu standard technic report transmiss area work programm adopt etsi standard telecommun oper area voluntari time commit vari date implement direct eec european telecommun standard et telecommun oper mandatori specif call tender extent exist nation specif vari member state product nation specif transmiss equip low exist spain signific itali transmiss market spain signific alcatel telettra competitor suppli line transmiss equip spain commiss carri detail enquiri structur impact concentr member state spain present fastest grow telecommun market commun growth expect continu annum real term year modern programm line transmiss equip market ecu million total commun market microwav equip market ecu million commun market trend telecommun equip market microwav equip market gener declin telefonica abil react concentr telecommun oper concern concentr telefonica rais object telecommun oper telefonica diversifi supplier polici overli depend supplier initi repli commiss enquiri telefonica state consid concentr alcatel telettra affect polici respons commiss subsequ enquiri telefonica polici diversifi transmiss equip purchas base inter alia principl order basi annual yearli programm product supplier awar invit tender product factor account award contract qualiti deliveri period reliabl price telefonica arrang contact supplier provid inform deem order tender equal foot potenti supplier freeli request technic approv product product successfulli undergon technic test includ telefonica catalogu suitabl product purchas ultim choic product made accord combin paramet technic perform industri presenc spain henceforth decis factor maintain back countri compani strateg plan thing open market supplier telefonica minor sharehold supplier sharehold alcatel standard electrica sa subsidiari alcatel sharehold telettra española sa subsidiari telettra sharehold telettra agreement condit acquisit telettra alcatel enter alcatel acquir telefonica sharehold telettra agreement provis alcatel call option acquir telefonica sharehold telettra española sa telefonica state longer strateg reason retain minor sharehold supplier suitabl offer februari alcatel made commit commiss acquir telefonica sharehold telettra control telettra acquir exercis call option acquir sharehold telefonica telettra españla sa enter immedi good faith negoti telefonica acquir fair price telefonica sharehold alcatel standard electrica sa competitor abil react concentr american telephon telegraph compani amp world lead line transmiss equip supplier conduct busi spain joint ventur compani amp ns españa set compani own amp own amper sa joint ventur transmiss sale strong increas amp ns españa todai offer full rang line transmiss product spain amp consid sell higher anticip level transmiss equip spain amp ns españa abil spare capac amp suppli product subsidiari market amp sell microwav transmiss product spain amp ns españa continu pursu public tender opportun microwav radio equip telefonaktiebolaget lm ericsson ericsson swedish compani small domest market base activ intern competitor turnov aris europ exclud sweden ericsson establish spain princip supplier public switch equip telefonica suppli digit transmiss equip product ericsson consid strengthen exist product offer easili expand local capac suppli product subsidiari ericsson limit sale small capac short distanc radio link microwav equip market spain state intend develop posit member state essenti product adapt requir develop siemen margin posit transmiss market spain account sale ecu million microwav equip siemen largest telecommun equip supplier worldwid alcatel amp signific potenti competitor transmiss market spain respons commiss enquiri siemen consid import trade barrier spanish market vertic integr telefonica supplier fact direct eec public procur appli spain alcatel notif cite possibl signific entri commun market larg compani notabl northern telecom canada fujitsu nec japan compani cost product adapt substanti substanti differ technic specif ii legal assess concentr notifi oper concentr mean articl regul eec acquir share telettra alcatel acquir control telettra commun dimens threshold articl regul eec nbo met combin aggreg worldwid turnov alcatel alsthom telettra ecu billion aggreg commun wide turnov ecu million third achiev member state concentr commun dimens compat common market relev product market concentr lead increas market share market public switch line transmiss equip microwav equip privat switch market relev product market purpos assess regul eec geograph market consid telecommun market commun larg fragment nation market main reason inter alia oper public network nation telecommun author tradition order telecommun equip small group nation supplier nation standard creat high cost adapt domest supplier situat evolv recit broad term standardis progress faster transmiss equip public switch replac analogu technolog digit break exist technic barrier medium long term anticip medium term technic barrier signific actual pace chang commerci polici network oper vari substanti member state combin alcatel telettra signific impact competit transmiss market spain suffici examin spanish market consid relev geograph market signific structur characterist spanish telecommun oper telefonica tradition purchas local establish supplier start chang legal oblig spain year appli procur procedur provid direct eec public procur vertic link telefonica major equip supplier alcatel telettra mean minor sharehold vertic link telecommun oper supplier distrot normal condit competit give supplier privileg posit market case telecommun oper minor sharehold link put supplier link disadvantag current structur characterist transmiss market spain conclud spain consid separ relev geograph market purpos assess concentr give rise domin posit significantli imped effect competit mean articl regul eec impact propos concentr impact public switch impact itali alcatel telettra market base figur italtel lead competitor italian market maintain market share year creation domin posit combin entiti product market concentr exclud itali consid relev geograph market privat switch telettra signific competitor member state margin presenc italian market concentr produc signific structur effect italian wider commun market impact concentr market line transmiss equip microwav equip transmiss market spain consid transmiss market spain basi actual market share alcatel telettra concentr lead high combin market share transmiss market spain entiti compani current princip supplier telefonica figur line transmiss equip alcatel telettra microwav equip alcatel telettra contest transmiss market high share market domin posit exist indic case supplier counter bui power monopsonist purchas present case high market share alcatel telettra transmiss market spain result telefonica choic compani main supplier choic made basi alcatel telettra activ competitor past telefonica maintain diversifi purchas polici probabl combin entiti sustain market share achiev parti competitor telefonica increas purchas supplier transmiss equip order prevent depend entiti amp immedi capabl increas deliveri entir rang line transmiss equip product amp suppli microwav product spain amp ns españa continu pursu public tender opportun ericsson cover rang line transmiss product capabl increas deliveri digit product product import segment instal ericsson limit sale microwav equip spain state intend develop posit member state princip actual competitor capabl increas suppli competitor present signific extent spain supplier chang environ procedur envisag direct eec public procur introduc telefonica state arrang contact supplier provid inform deem order tender equal foot potenti supplier freeli request technic approv product product successfulli undergon technic test includ telefonica catalogu suitabl product purchas ultim choic product made accord combin paramet technic perform industri presenc spain henceforth decis factor basi signific barrier demand side strong competitor siemen enter spain siemen present extent microwav equip market technic cost adapt todai constitut appreci barrier entri european base competitor indic time proprietari intellectu properti right exploit amount barrier competitor framework standard etsi commiss strong interest prevent barrier emerg competitor hitherto base europ northern telecom fujitsu nec determin realist potenti competitor spain forese futur line transmiss equip market technic barrier entri remain commun standard programm effect telefonica fulli adopt standard defin etsi area north american japanes standard significantli adopt european network oper common european standard defin implement minimum volum justifi adapt realist possibl structur link telefonica parti concentr context present case particip telefonica capit alcatel telettra strong posit transmiss market spain consid amount barrier competitor alcatel enter commit vi vi commiss alcatel acquir telefonica minor sharehold telettra telettra españa sa enter negoti acquir telefonica minor sharehold alcatel standard electrica sa vertic link telefonica telettra disappear telefonica willing offer probabl vertic link telefonica alcatel remov alcatel commit respect alcatel commit relat remov signific structur barrier transmiss market spain consid commiss ensur commit compli complet concentr attach oblig decis conclus reason outlin appear competitor alcatel telettra capabl futur increas suppli telefonica transmiss market diversifi purchas polici remov vertic link alcatel telettra appear telefonica capabl futur increas purchas supplier circumst consid current high market share alcatel telettra transmiss market spain enabl entiti behav appreci extent independ competitor main custom concentr creat strengthen domin posit result effect competit significantli imped common market substanti part adopt decis articl subject oblig defin articl propos concentr alcatel telettra declar compat common market articl oblig attach decis alcatel acquir telefonica sharehold telettra spa acquisit control telettra spa alcatel inform commiss take place alcatel exercis call option acquir sharehold telefonica telettra espanola sa latest month acquisit control telettra alcatel inform commiss take place alcatel enter immedi good faith negoti telefonica acquir fair price telefonica sharehold alcatel standard electrica sa week close agreement fiat acquir telettra alcatel inform commiss alcatel inform commiss success outcom success outcom month alcatel inform commiss progress negoti take place updat inform subsequ month alcatel event success outcom success outcom month elaps commiss full detail offer made includ price condit enabl commiss verifi negoti defin conduct good faith ensur effect commit neutral alcatel sell telefonica share compani alcatel group activ commun prior approv commiss time commiss waiv oblig oblig ceas effect latest date full implement spain direct eec place januari articl decis address alcatel nv pari headquart sa rue emeriau pari telettra spa cornalia milano brussel april commiss leon brittan vice presid oj rectifi vesion oj oj oj annex constitut busi secret delet accord articl regul cee public oj