The Bundeskartellamt has cleared T-Online International AG’s acquisition of a 37 per cent share in Bild.de after the companies concerned had clarified with legally binding effect a number of preconditions for clearance. Ulf Böge, President of the Bundeskartellamt, stated the decision ensures that (1) in contrast to what had originally been planned, the joint venture of T-Online and Bild.de will not market Internet access itself so that T-Online’s dominant position will not be strengthened. (2) Internet users will also be able to access the Bild.de portal via other access providers and view or download paid content. As a result T-Online will no longer be the exclusive access provider for Bild.de/T-Online’s content and its use. (3) Billing for paid content exclusively through T-Online is not admissible. The joint venture will therefore offer users at least one alternative billing system of other providers. “Our competition concerns regarding the feared exclusivity of Bild.de and the strengthening of T-Online’s dominant position have thus been dispelled.”

The Bundeskartellamt had informed the companies on 25 February 2002 that the project in its original form would have strengthened the dominant position of T-Online as an Internet access provider.

The companies have now undertaken with legally binding effect that T-Online subscription will not be a precondition for using paid content provided by Bild.de/T-Online. In this way the Bundeskartellamt has achieved that users have at least one alternative billing system of other providers to choose from in addition to T-Online’s billing system where services are charged in Deutsche Telekom’s monthly phone bill. By opening up access to the joint venture’s paid content services to non-T-Online-customers, users will no longer be compelled to subscribe to T-Online merely on account of attractive content.

 Consequently, the merger does not lead to the creation or strengthening of a dominant position in the market for paid content which is still in the development stage. In this way it is guaranteed that non-T-Online-customers at the portal wishing to “buy content” are not automatically linked up to T-Online’s billing system. Moreover it is in Bild.de’s economic interest to make its paid content available to non-T-Online-customers as well.

 The Bundeskartellamt has cleared the merger in its subsequently concretised form.  Should the practical implementation of the project deviate from these preconditions, the clearance will not be effective. This would be a violation of the prohibition to put the merger into effect. Moreover, such an administrative offence could be punished by an administrative fine.

 Mr Böge stated: “The Bundeskartellamt will continue to ensure that access to Internet platforms will be open and non-discriminatory also in the future. In this way we can make sure that the consumer will benefit from the procompetitive effects of the Internet.”