The European Commission has decided to open a full investigation into the proposed merger between telecoms companies MCI WorldCom and Sprint. The Commission will make a detailed assessment of the impact of the transaction on competition conditions in various areas of the telecoms industry, in particular, the provision of top level Internet connectivity services, global telecommunication services to multinational companies, and termination in the US of international voice telephony calls. A final decision from the Commission is expected by early July. MCI WorldCom is a global telecommunication company providing a wide range of telecommunications services to businesses and consumers. MCI WorldCom also provides, mainly through its subsidiary UUNet, Internet services.
Sprint provides in the USA local, long-distance, and wireless communications and Internet services.
Sprint's activities in Europe are largely conducted through its participation in Global One, a joint venture with Deutsche Telecom and France Telecom. This merger was allowed to go through only after MCI had undertaken to divest its Internet business. The transaction under review raises similar issues with MCI WorldCom still enjoying a position as undisputed market leader and Sprint being probably the second player in this market. On 2 February 2000, the notifying parties submitted an undertaking that Sprint would use every endeavour to complete, without undue delay, its withdrawal from the Global One joint venture. The parties argued that the proposed commitment would remove any concerns regarding the compatibility of the notified concentration as regards any affected market.