WRITTEN QUESTION No. 3930/97 by W.G. van VELZEN to the Commission. Proposed merger of Worldcom and MCI on the Internet market
Date: 1997-12-12
Institutions: European Parliament, VAN VELZEN W G
Subjects: access to information, competition policy, computer network, dominant position, economic concentration, information network, merger, restriction on competition, transmission network

C 196/36

EN

Official Journal of the European Communities

22. 6. 98

Answer given by Mrs Wulf-Mathies on behalf of the Commission

(29 January 1998)

The  operations  proposed  might  be  eligible  for  funding  under  the  Interreg  II  C  (cid:145)Cadses(cid:146)  (Central  Adriatic
Danubian and south eastern European Space) programme. It would be necessary to formulate a project dealing
with  this  theme  and  present  it  to  the  Austrian  Cadses  secretariat  for  consideration  by  those  responsible.  At
present, there is already one project submission dealing with the effects of the enlargement of the Community.

The  address  of  the  Cadses  secretariat  is  forwarded  direct  to  the  Honourable  Member  and  to  the  Secretariat
General of the Parliament.

(98/C 196/51)

WRITTEN QUESTION E-3930/97

by W.G. van Velzen (PPE) to the Commission

(12 December 1997)

Subject: Proposed merger of Worldcom and MCI on the Internet market

There have been reports in the papers recently about the proposed merger of Worldcom and MCI. If this merger
actually goes ahead, the new company will occupy a dominant position on the Internet market.

1.
Does  the  Commission  intend  to  examine  whether  the  effects  of  this  proposed  merger  on  access  to  the
Internet are in line with European rules on competition, and in particular Articles 90, 85 and 86 of the Treaty?

Does the Commission feel there are grounds for laying down conditions for this proposed merger in the

2.
light of development of the market in the European Union?

Answer given by Mr Van Miert on behalf of the Commission

(3 February 1998)

On 20 November 1997 the Commission received from WorldCom, Inc and MCI Communications Corporation a
joint  notification  of  an  operation  by  which  the  two  companies  would  merge  within  the  meaning  of  Council
Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between undertakings (1)
((cid:145)the merger regulation(cid:146)). The notification is under investigation in accordance with the terms of the Regulation.
No proceedings in relation to the notified operation are in progress under Articles 90, 85 or 86 of the EC Treaty.

On  18  December  1997  the  notification  was  declared  incomplete.  The  Commission  is  awaiting  the  complete
information. From the point at which complete information is submitted, the Commission will have under Article
10 of the merger regulation a period of one month from the day following receipt in which to take a decision
under Article 6 of the same Regulation.

If proceedings are initiated under Article 6(1)(c) of the merger regulation, Article 8 enables the parties, during
those  proceedings,  to  offer  modifications  to  their  original  concentration  plan  aimed  at  ensuring  that  the
concentration does not create or strengthen a dominant position as a result of which effective competition would
be significantly impeded in the common market or in a substantial part of it. In the event that such proceedings
were opened, it would be for the parties themselves to decide whether to propose such modifications.

(1)  OJ L 257, 21.9.1990.