EUROPEAN COMMISSION DG Competition Case M.7978 - VODAFONE / LIBERTY GLOBAL / DUTCH JV Only the English text is available and authentic. REGULATION (EC) No 139/2004 MERGER PROCEDURE Article 6(1)(b) in conjunction with Art 6(2) Date: 03/08/2016 This is a provisional non-confidential version. The definitive non-confidential version will be published as soon as it is available. EUROPEAN COMMISSION Brussels, 03.08.2016 C(2016) 5165 final In the published version of this decision, some information has been omitted pursuant to Article PUBLIC VERSION 17(2) of Council Regulation (EC) No 139/2004 concerning non-disclosure of business secrets and other confidential information. The omissions are shown thus […]. Where possible the information omitted has been replaced by ranges of figures or a general description. To the notifying parties: Dear Sir/Madam, Subject: Case M.7978 -Vodafone / Liberty Global / Dutch JV Commission decision pursuant to Article 6(1)(b) in conjunction with Article 6(2) of Council Regulation No 139/20041 and Article 57 of the Agreement on the European Economic Area2 1 OJ L 24, 29.1.2004, p. 1 (the 'Merger Regulation'). With effect from 1 December 2009, the Treaty on the Functioning of the European Union ('TFEU') has introduced certain changes, such as the replacement of 'Community' by 'Union' and 'common market' by 'internal market'. The terminology of the TFEU will be used throughout this decision. 2 OJ L 1, 3.1.1994, p. 3 (the 'EEA Agreement'). Commission européenne, DG COMP MERGER REGISTRY, 1049 Bruxelles, BELGIQUE Europese Commissie, DG COMP MERGER REGISTRY, 1049 Brussel, BELGIË Tel: +32 229-91111. Fax: +32 229-64301. E-mail: [email protected]. TABLE OF CONTENT 1. THE PARTIES ............................................................................................................ 5 2. THE OPERATION AND THE CONCENTRATION ................................................ 5 3. UNION DIMENSION ................................................................................................. 6 4. REFERRAL REQUEST .............................................................................................. 6 5. RELEVANT MARKETS ............................................................................................ 7 5.1. RETAIL SUPPLY OF FIXED TELEPHONY SERVICES .............................. 8 5.1.1. Product market definition .................................................................... 8 5.1.2. Geographic market definition .............................................................. 9 5.2. RETAIL SUPPLY OF FIXED INTERNET SERVICES .................................. 9 5.2.1. Product market definition .................................................................... 9 5.2.2. Geographic market definition ............................................................ 10 5.3. RETAIL SUPPLY OF TV SERVICES ........................................................... 11 5.3.1. Product market definition .................................................................. 11 5.3.2. Geographic market definition ............................................................ 15 5.4. RETAIL SUPPLY OF MOBILE TELECOMMUNICATIONS SERVICES . 16 5.4.1. Product market definition .................................................................. 16 5.4.2. Geographic market definition ............................................................ 18 5.5. RETAIL SUPPLY OF MULTIPLE PLAY SERVICES ................................. 18 5.5.1. Product market definition .................................................................. 19 5.5.2. Geographic market definition ............................................................ 25 5.6. RETAIL BUSINESS CONNECTIVITY SERVICES .................................... 26 5.6.1. Product market definition .................................................................. 26 5.6.2. Geographic market definition ............................................................ 28 5.7. LICENSING/ACQUISITION OF BROADCASTING RIGHTS FOR TV CONTENT ...................................................................................................... 28 5.7.1. Product market definition .................................................................. 29 5.7.2. Geographic market definition ............................................................ 32 5.8. WHOLESALE SUPPLY AND ACQUISITION OF TV CHANNELS .......... 33 5.8.1. Product market definition .................................................................. 34 5.8.2. Geographic market definition ............................................................ 37 5.9. WHOLESALE ACCESS AND CALL ORIGINATION ON MOBILE NETWORKS ................................................................................................... 37 5.9.1. Product market definition .................................................................. 37 5.9.2. Geographic market definition ............................................................ 38 5.10. WHOLESALE MARKET FOR CALL TERMINATION ON MOBILE NETWORKS ................................................................................................... 38 5.10.1. Product market definition .................................................................. 39 5.10.2. Geographic market definition ............................................................ 39 5.11. WHOLESALE INTERNATIONAL ROAMING SERVICES ....................... 39 5.11.1. Product market definition .................................................................. 40 5.11.2. Geographic market definition ............................................................ 40 2 5.12. WHOLESALE CALL TERMINATION SERVICES ON FIXED NETWORKS ................................................................................................... 40 5.12.1. Product market definition .................................................................. 41 5.12.2. Geographic market definition ............................................................ 41 5.13. WHOLESALE TERMINATION AND HOSTING OF CALLS TO NON- GEOGRAPHIC NUMBERS ........................................................................... 41 5.13.1. Product market definition .................................................................. 42 5.13.2. Geographic market definition ............................................................ 42 5.14. WHOLESALE PROVISION OF DOMESTIC CALL TRANSIT SERVICES ON FIXED NETWORKS ........................................................... 43 5.14.1. Product market definition .................................................................. 43 5.14.2. Geographic market definition ............................................................ 44 5.15. WHOLESALE INTERNATIONAL CARRIER SERVICES ......................... 44 5.15.1. Product market definition .................................................................. 44 5.15.2. Geographic market definition ............................................................ 45 5.16. WHOLESALE LEASED LINES .................................................................... 45 5.16.1. Product market definition .................................................................. 46 5.16.2. Geographic market definition ............................................................ 46 5.17. INTERNET HOSTING SERVICES ............................................................... 47 5.17.1. Product market definition .................................................................. 47 5.17.2. Geographic market definition ............................................................ 48 5.17.3. No affected market ............................................................................ 48 5.18. WHOLESALE INTERNET CONNECTIVITY ............................................. 49 5.18.1. Product market definition .................................................................. 49 5.18.2. Geographic market definition ............................................................ 50 6. AFFECTED MARKETS ........................................................................................... 50 7. COMPETITIVE ASSESSMENT .............................................................................. 55 7.1. ANALYTICAL FRAMEWORK .................................................................... 55 7.2. HORIZONTAL ASSESSMENT ..................................................................... 56 7.2.1. Introduction ....................................................................................... 56 7.2.2. Possible market for retail supply of fixed multiple play bundles ...... 57 7.2.3. Possible market for retail supply of fixed-mobile multiple play bundles ............................................................................................... 68 7.2.4. Retail mobile telecommunications services ...................................... 72 7.2.5. Retail business connectivity services ................................................ 76 7.2.6. Wholesale supply and acquisition of TV channels ............................ 78 7.2.7. Acquisition of individual audio-visual/TV content ........................... 80 7.3. VERTICAL ASSESSMENT ........................................................................... 80 7.3.1. Wholesale access and call origination on mobile networks .............. 81 7.3.2. Wholesale internet connectivity ........................................................ 83 7.3.3. Wholesale termination and hosting of calls to non-geographic numbers ............................................................................................