SEAT PAGINE GIALLE/1288 SERVIZIO DI CONSULTAZIONE TELEFONICA
PRESS RELEASE
PRESS RELEASE
ANTITRUST AUTHORITY OPENS INVESTIGATION INTO ACQUISITION OF 1288 BY SEAT PAGINE GIALLE
The merger could strengthen a dominant position and possibly restrict competition in the provision of information to users
The Italian Competition Authority, at its meeting on 1 February 2007, decided to open an investigation into Seat Pagine Gialle and 12.88 Servizio di Consultazione Telefonica over a merger involving the purchase by Seat of 100% of 12.88 SCT's share capital. Seat will also acquire rights to the numbers “12.88” and “12.48” and an intellectual property licence to use the “Pelotti” trademark and image (these are the red puppet figures presently used in 12.88 SCT's advertising).
In the Authority's view, the merger will significantly affect the market for telephone subscriber information services (directory assistance): according to the Authority's calculations, Seat, which is already the main market operator with a much larger share than that of the second operator, Telecom Italia, would further reinforce its position. An additional consideration is that in the market for telephone subscriber information services, following the liberalization of October 2005, trademark recognition is an indispensable factor in determining viability and success in the marketplace: hence, huge investments must be made in advertising, at least in the start-up phase.
Seat's position in the provision of subscriber information services on different platforms must also be taken into consideration: the “Pagine Bianche” ["White Pages"] trademark, besides being the title under which the official paper-based phone book is distributed throughout Italy, is linked to the “Pagine Bianche on line” service and the number “12.40”. Hence, Seat enjoys an important competitive advantage over its competitors, given that it can offer a wide-ranging set of services and can leverage its investment in its brands in different service areas.
The Authority, then, will determine whether the merger may create or strengthen a dominant position on the part of Seat in the directory assistance market, thus reducing the opportunities other businesses present in the market have to exercise healthy competitive pressure, and raising barriers to the entry of potential competitors.
Rome, 2 February 2007