Airdata challenges Telefonica Deutschland deal

German regional operator Airdata has launched a legal challenge against Telefonica Deutschland’s acquisition of rival cellco E-Plus, which was approved by the European Commission (EC) in July 2014 and completed in October. The EUR8.55 billion (USD9.5 billion) deal reduced the number of mobile network operators from four to three, making the merged company the market leader ahead of Telekom Deutschland and Vodafone Germany. Telefonica agreed to implement a package of conditions to ensure that new competitors will enter the market and that the position of existing players is strengthened, but Airdata states that the remedies offered to allay competition concerns did not go far enough, negatively impacting on German consumers. Reuters cites the EC as saying that it would defend its decision to approve the deal in court, while Telefonica Deutschland said it had taken notice of the complaint and would look into the details, adding that it would not have an immediate effect on the merged company and its operations.