EN This text is made available for information purposes only. A summary of this decision is published in all EU languages in the Official Journal of the European Union. Case No COMP/M.6690 - Syniverse/ MACH Only the English text is authentic. REGULATION (EC) No 139/2004 MERGER PROCEDURE Article 8 (2) Date: 29/05/2013 EN EN EUROPEAN COMMISSION Brussels, 29.5.2013 C(2013) 3114 final COMMISSION DECISION of 29/05/2013 addressed to:_Syniverse Holdings, Inc. declaring a concentration to be compatible with the internal market and the EEA agreement (Case No COMP/M.6690 - Syniverse/ MACH) (Only the English text is authentic) EN 1 EN TABLE OF CONTENTS 1. INTRODUCTION AND PROCEDURE ..................................................................... 6 2. THE PARTIES AND THE PROPOSED CONCENTRATION .................................. 7 3. UNION DIMENSION ................................................................................................. 8 4. INVESTIGATION OF THE CASE ............................................................................. 8 5. MARKET DEFINITION ........................................................................................... 10 5.1. Introduction to outsourced roaming services ............................................................. 10 5.1.1. Description of Data Clearing Services ....................................................................... 10 5.1.2. Description of NRTRDE services .............................................................................. 12 5.1.3. Description of Financial Clearing Services ................................................................ 13 5.1.4. Description of other closely related services ............................................................. 14 5.1.4.1. Roaming Hub Services ............................................................................................... 14 5.1.4.2. Business Intelligence solutions .................................................................................. 15 5.1.4.3. A2P and P2P SMS services ........................................................................................ 15 5.1.5. The customers ............................................................................................................ 15 5.1.6. The competitive landscape ......................................................................................... 20 5.1.6.1. Comfone ..................................................................................................................... 20 5.1.6.2. Nextgen ...................................................................................................................... 21 5.1.6.3. TNS ............................................................................................................................ 21 5.1.6.4. ARCH ......................................................................................................................... 22 5.1.6.5. EDCH ......................................................................................................................... 22 5.1.6.6. Other market participants ........................................................................................... 22 5.2. Product market definition ........................................................................................... 23 5.2.1. Data Clearing Services ............................................................................................... 23 5.2.1.1. Views of the Notifying Party ..................................................................................... 23 5.2.1.2. The Commission's investigation and assessment ....................................................... 23 5.2.2. NRTRDE .................................................................................................................... 24 5.2.2.1. Views of the Notifying Party ..................................................................................... 24 5.2.2.2. The Commission's investigation and assessment ....................................................... 25 5.2.3. Financial Clearing Services ........................................................................................ 31 5.2.3.1. Views of the Notifying Party ..................................................................................... 31 5.2.3.2. The Commission's investigation and assessment ....................................................... 33 5.2.4. A2P and P2P services................................................................................................. 36 EN 2 EN 5.2.4.1. Views of the Notifying Party ..................................................................................... 36 5.2.4.2. The Commission's investigation and assessment ....................................................... 36 5.2.5. Roaming hub services ................................................................................................ 36 5.2.5.1. Views of the Notifying Party ..................................................................................... 36 5.2.5.2. The Commission's investigation and assessment ....................................................... 36 5.3. Geographic Market Definition ................................................................................... 36 5.3.1. Data Clearing Services ............................................................................................... 36 5.3.1.1. Views of the Notifying Party ..................................................................................... 36 5.3.1.2. The Commission's investigation and assessment ....................................................... 37 5.3.2. NRTRDE .................................................................................................................... 38 5.3.2.1. Views of the Notifying Party ..................................................................................... 38 5.3.2.2. The Commission's investigation and assessment ....................................................... 38 5.3.3. Financial Clearing Services ........................................................................................ 39 5.3.3.1. Views of the Notifying Party ..................................................................................... 39 5.3.3.2. The Commission's investigation and assessment ....................................................... 39 5.3.4. A2P and P2P services................................................................................................. 40 5.3.4.1. Views of the Notifying Party ..................................................................................... 40 5.3.4.2. The Commission's investigation and assessment ....................................................... 40 5.3.5. Roaming hub services ................................................................................................ 40 5.3.5.1. Views of the Notifying Party ..................................................................................... 40 5.3.5.2. The Commission's investigation and assessment ....................................................... 40 5.4. Other related markets ................................................................................................. 41 6. COMPETITIVE ASSESSMENT............................................................................... 42 6.1. Horizontal non-coordinated effects in the DC market ............................................... 42 6.1.1. Introduction ................................................................................................................ 42 6.1.2. The merged entity would have very high market share ............................................. 42 6.1.2.1. Views of the Notifying Party ..................................................................................... 42 6.1.2.2. The Commission's investigation and assessment ....................................................... 43 6.1.3. The merging firms are each other's closest competitors ............................................ 46 6.1.3.1. Views of the Notifying Party ..................................................................................... 46 6.1.3.2. The Commission's investigation and assessment ....................................................... 49 6.1.4. Customers' possibility to switch supplier ................................................................... 63 6.1.4.1. Introduction ................................................................................................................ 63 6.1.4.2. Views of the Notifying Party ..................................................................................... 63 6.1.4.3. The Commission's investigation and assessment ....................................................... 67 EN 3 EN 6.1.5. Competitors' limited ability to increase supply if prices increase and/or quality decreases .................................................................................................................... 86 6.1.5.1. Introduction ................................................................................................................ 86 6.1.5.2. Views of the Notifying Party ..................................................................................... 86 6.1.5.3. The Commission's investigation and assessment ....................................................... 87 6.1.6. Likely effects of the proposed concentration: decrease of quality and/or increase of prices for DC services ...............................................................................................