TELECOMMUNICATIONS : INQUIRY INTO ORANGE AND T-MOBILE MERGER EXTENDED.

The European Commission announced, on 3 February, that it had extended, until 1 March, the deadline for closing its investigation into the proposed merger of the UK activities of Orange, a subsidiary of France Telecom, and T-Mobile, a Deutsche Telekom AG subsidiary. The extension was decided after the UK competition authority, the Office of Fair Trading (OFT), asked the Commission to review the implications of the case in Britain. The proposed transaction prompts concerns about hindrances to competition in the UK.

"The OFT's initial impression, after consultation, is that this joint venture represents a significant threat to competition on the mobile communications market in the United Kingdom," notes the office. Although it cannot de facto oppose the venture, the OFT can give its opinion and request a detailed investigation by Britain's Competition Commission. If competition rules were indeed...