Macedonian Competition Commission to question DT

20 May 2008

A delegation from German telecoms giant Deutsche Telekom (DT) is reportedly planning to hold talks with Macedonia’s Competition Committee amid concerns the German group now holds an unfair dominant position in the market following its acquisition of shares in Greek operator OTE. Last week, DT acquired a roughly 25% stake in OTE which owns Macedonia’s second largest cellco, Cosmofon, through its mobile arm Cosmote. Germany’s dominant telecoms firm already owns the leading operator T-Mobile Macedonia through Magyar Telekom, which together control around 90% of the mobile market, and also owns the country’s leading fixed line operator Makedonski Telekom.

Earlier this month, the head of the Competition Commission expressed the country’s concerns over DT’s plans, saying: ‘If the new legal subject which is formed after the merger holds more than 45% of the market, this will not be allowed’. Under local telecoms laws a firm is adjudged to hold a monopoly if it holds 45% or more of the market. If a structural merger achieves the effect of holding 40% or more of the market it must, under law, notify the competition authority.

North Macedonia, Deutsche Telekom (DT), Makedonski Telekom (Telekom), ONE (incl. on.net and Cosmofon), T-Mobile Macedonia