Page 26 - Lawtext Utility Law Review Journal Sample

EUROPEAN CURRENT SURVEY 16[2006/2007]4 ULR 173

European Commission approves The European Commission has cleared the acquisition of the German internet access
proposed acquisition of AOL’s business of AOL LLC by Telecom Italia SpA. Telecom Italia is active worldwide in the
German internet access business by telecommunications sector, and in particular in voice telephony, mobile services and data
Telecom Italia transmission services. In Germany, Telecom Italia is mainly active in residential broadband
(IP/06/1644) 28 November 2006 access and voice telephony. AOL provides online interactive services through a number of
brands as well as internet access services in the United States and Europe. In Germany,
AOL provides internet access, both narrowband and broadband, and other internet-related
services. The Commission’s examination of the proposed transaction demonstrated that
the horizontal overlaps between the activities of Telecom Italia and AOL in Germany (that
is, broadband and narrowband internet access services) are limited, and that the combined
firm would continue to face a number of strong, effective competitors, notably the incumbent
Deutsche Telekom.

Broadcasting/media
European Commission requests The European Commission has formally requested Greece to take appropriate national
Greece to adopt new framework for measures regarding broadcasting services in order to comply with an ECJ judgment of 14
broadcasting services April 2005, which confirmed that Greece had failed to transpose the Electronic
(IP/06/1401)16 October 2006 Communications Liberalisation Directive within the appropriate deadline. All Member
States except Greece have already notified the Commission of measures to transpose the
Directive. The ECJ has established that although Greece notified certain measures that it
had taken, broadcasting transmission services were explicitly excluded from the scope of
this notified legislation. After the ECJ judgment, Greece confirmed that a new law on media
would fully implement the Directive, but no action had been taken for one and a half years.
The Commission indicated that if Greece did not comply with the ECJ judgment, the
Commission might refer Greece to the ECJ for the second time and request it to impose
fines on Greece.

Post
European Commission recommends The European Commission has recommended that France end the unlimited guarantee
that France withdraw its unlimited enjoyed by the French Post Office (‘La Poste’) in its capacity as a public body by the end of
state guarantee for the French Post 2008. As part of its monitoring of the existing State Aid schemes under the EC Treaty, the
Office Commission examined the guarantee under which the state has responsibility for liabilities
(IP/06/1305) 4 October 2006 entered into by La Poste. The Commission concluded that the fact that the guarantee is
unlimited allows La Poste to obtain finance on more favourable terms, thereby giving it an
advantage over its competitors and thus distorting competition on a market which is in
the process of being liberalised. The proposed appropriate measures follow on from the
Commission’s Decision of 21 December 2005 on the transfer of the banking and financial
business of La Poste to its subsidiary, La Banque Postale. The Commission stated at the
time that the Decision did not cover a number of issues associated with the transfer of La
Poste’s financial business to a subsidiary, including the question of the unlimited state
guarantee granted to La Poste.

European Commission opens an The European Commission has decided to open an in-depth investigation into a notified
investigation into the proposed proposal to reform the financing of the pensions of public sector workers employed by
reform of the French Post Office the French Post Office (‘La Poste’). The financing of such pensions, which affects around 61
workers’ pension fund per cent of La Poste’s staff, is currently subject to exceptional arrangements. Unlike other
(IP/06/1361) 12 October 2006 French companies, including those employing public sector workers, La Poste does not pay
any employer’s contribution in discharge of its obligations. Under the reform, La Poste
would, like other companies, pay an employer’s contribution, except for the public sector
workers employed by La Poste. According to the French authorities, the reform does not
involve any State Aid since it merely compensates for the structural disadvantage imposed
on La Poste by the existing legislation, and ensures fair competition with other operators
in a market undergoing liberalisation. The Commission will thus examine in particular
whether the reduction in La Poste’s costs sought by the reform would not give La Poste an
advantage over its competitors.

UTILITIES LAW REVIEW PUBLISHED BY LAWTEXT PUBLISHING LIMITED
www.lawtext.com