Extracts from the press conference by Joaquín Almunia on the EC block of proposed acquisition of TNT Express by UPS
Type: Summary of press conference
End production: 30/01/2013 First transmission: 30/01/2013
On 30 January 2013, Joaquín Almunia, Vice-President of the EC in charge of Competition, held a press conference on the EC block of proposed acquisition of TNT Express by UPS.
The European Commission has prohibited under the EU Merger Regulation the proposed acquisition of TNT Express by UPS. The Commission found that the take-over would have restricted competition in 15 Member States when it comes to the express delivery of small packages to another European country. In these Member States, the acquisition would have reduced the number of significant players to only 3 or 2, leaving sometimes DHL as the only alternative to UPS. The concentration would therefore have likely harmed customers by causing price increases. During the investigation, UPS offered to divest TNT's subsidiaries in these 15 countries and allow the buyer to access its intra-European air network for five years. The Commission carried out an in-depth assessment, including a market test where customers and other interested parties were consulted. However, these remedies proved inadequate to address the identified competition concerns.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General view of the press conference room
||SOUNDBITE by Joaquín Almunia, Vice-President of the EC in charge of Competition, (in ENGLISH) saying that the Commission decided to prohibit the acquisition of the logistics company TNT Express by its competitor UPS; in the investigation they found that the proposed take-over would have restricted competition in 15 Member States and would have likely led to price increases.
||Cutaway of a photographer
||SOUNDBITE by Joaquín Almunia (in ENGLISH) saying that the acquisition of TNT by UPS would have significantly changed the competitive situation in the market; so they had to look very closely at its impact, keeping in mind that customers rely on vibrant competition between providers so that they can access good quality services on affordable terms.
||Cutaway of the audience
||SOUNDBITE by Joaquín Almunia (in ENGLISH) saying that they analysed what the concrete impact of such a concentration would be; they found that prices would increase in 29 countries within the European Economic Area (EEA); however, UPS argued that the merger would have created significant efficiencies to outweigh these negative effects; they looked very carefully at these arguments; their investigation – supported by a thorough economic assessment – showed that some of the savings resulting from the combination of the parties' intra-European air networks could indeed be passed on to consumers.
||General view of the podium