Information notice from the Commission
Date: 2002-09-10
Institutions: European Commission
Subjects: EU control, European Commission, application of EU law, offence, report

10.9.2002

EN

Official Journal of the European Communities

C 214/21

6. ARGUMENTS OF THE PARTIES

25. The Parties justify the agreement in terms of the financial
difficulties experienced by 3G operators,
the regulatory
timeframe (the United Kingdom requirement of 80 %
population coverage by the end of 2007) and the need
to meet environmental concerns.

26. Article 81(1): The Parties argue that the agreement does
not have the object of effect of appreciably restricting
competition within the common market contrary to
Article 81(1) as they claim the agreement will
increase
competition rather than reduce it. This claim is based on
the fact that the parties will compete with each other at
network level in the IBA, whereas cooperation in the DA
will enable the Parties to compete at services level with
other 3G operators nationwide at an earlier stage than if
they did not cooperate.

27. Article 81(3): If the agreement is considered to restrict
competition, the Parties argue in the alternative, that it is
exemptable under Article 81(3). They argue the agreement
will speed up the provision of 3G services by enabling the
Parties to reduce 3G network deployment costs, making
3G services available earlier to end users. The Parties argue
that consumers will benefit through the delivery of faster,
more innovative 3G services at lower prices. Finally, the
parties will as a result of their cooperation not produce
standardised services to end users but will continue to
compete directly on content applications, retail pricing,
wholesale pricing,
service,
services and
channel

terms
to market and customer

and conditions of

care

marketing. Hence they conclude that as a result of the
Agreement competition will not merely be preserved but
will be increased in the United Kingdom markets for 3G
networks and services.

7. CONCLUSION

28. The Commission intends to take a favourable view in
respect of the notified agreement. Before doing so, the
Commission invites
their
comments within one month of the publication of this
notice,
fax number given below,
quoting the
reference Case COMP/N.38.370 — BT
Cellnet & BT3G and One2One (Network sharing UK).

to the address or

submit

parties

third

to

European Commission
Directorate-General for Competition
Directorate C
B-1049 Brussels
Fax (32-2) 296 70 81
e-mail: wolf.sauter@cec.eu.int

it must

29. If a Party submitting comments considers that

these
indicate the passages
contain business secrets,
which,
in its opinion, ought not to be disclosed on the
grounds that they contain business secrets or other confi-
dential material, and state the reasons. If the Commission
does not receive a request with reasons, it will assume that
the
confidential
information.

comments

contain

any

not

do

INFORMATION NOTICE FROM THE COMMISSION

(2002/C 214/09)

The Commission adopted on 28 June 2002 THE NINETEENTH REPORT ON MONITORING THE
APPLICATION OF COMMUNITY LAW (COM(2002) 324 final of 28.6.2002).

The European Commission yearly draws up a report on monitoring of the application of Community law,
in response to requests made by the European Parliament (Resolution of 9 February 1983) and the
Member States (point 2 of Declaration No 19 annexed to the Treaty signed at Maastricht on 7
February 1992). The report also responds to the requests expressed by the European Council or the
Council of Ministers in relation to specific sectors.

The report relates the action of the Commission in monitoring the application of Community law in year
2001. It illustrates the evolving infringement proceedings initiated or managed by the Commission in
2001 under Article 226 of the Treaty (or Article 141 of the Euratom Treaty) by emphasising the policy of
the Commission in this matter, detailed by sector.

This report is available on

Europa: http://www.europa.eu.int/comm/secretariat_general/sgb/droit_com/index_en.htm#infringements

Eur-Lex: http://www.europa.eu.int/eur-lex/