Stampa

SEAT PAGINE GIALLE/1288 SERVIZIO DI CONSULTAZIONE TELEFONICA


PRESS RELEASE



PRESS RELEASE


TELEPHONE SERVICES: ANTITRUST AUTHORITY VETOES PURCHASE OF 1288 SCT BY SEAT PAGINE GIALLE


The takeover would reinforce a dominant position, restrict competition and have negative results for consumers

The Italian Competition Authority, at its meeting on 4 April 2007, decided to disallow the operation whereby Seat Pagine Gialle would have acquired 100% of the shares of 12.88 SCT. Basically, Seat would have purchased the usage rights for 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). Seat has been offering directory assistance services since 2001, initially by way of the “89.24.24 Pronto Pagine Gialle” service and subsequently by way of the “1240-Pronto Pagine Bianche” service; 12.88 SCT began offering the same services through the number “12.88” in October 2005, following the opening up of the market.

The investigation carried out by the Authority showed that Seat, already the leader in this particular market with a share far above that of the second operator, Telecom Italia, would, by acquiring “12.88”, have further strengthened its position, reaching 60-70 per cent. Such reinforcement, given the competitive advantage Seat already enjoys through its control of well-established brands (such as “Pagine Bianche” and “Pagine Gialle”) and its access to a proprietary data base by name and category built up through the network of advertisers in Pagine Gialle, would have raised further barriers to the entry of others into the market.


The Authority's decision also takes into account Seat's position in the related markets of user information in paper-based listings and on the Internet: indeed, Seat publishes “Pagine Bianche” ["White Pages"], the official telephone book, and “Pagine Gialle” ["Yellow Pages"], as well as managing the Internet services “Pagine Bianche on line” and “Pagine Gialle on line”.

In summary, the Authority deemed that the elimination of the “12.88” brand by way of the proposed acquisition would have meant the loss of one of the market's most dynamic competitors and consequently a reduction in consumer choice in telephone user information services.


Rome, 6 April 2007