The European Commission Wednesday opened an investigation into the proposed acquisition of the wireless business of British technology group the BSG Group by U.S. rival Syniverse Technologies Inc.
The investigation will focus on whether the proposed merger and subsequent market concentration would likely lead to higher prices and lower quality for data clearing services, the Commission said in a statement.
“The Commission’s initial market investigation indicates that the proposed merger would raise serious doubts as to its compatibility with the single market given the two companies’ horizontal overlaps in the market for GSM roaming data clearing services,” the Commission said.
The Commission has until Nov. 16 to make a decision.
Syniverse is a global provider of technology services to wireless telecommunications companies. The BSG Group is a global provider of payment processing, data clearing, financial settlement and risk management solutions for fixed-line and wireless communication service providers.
The proposed transaction only relates to the acquisition of the BSG Group’s wireless business outside the U.S.
The two companies’ activities only overlap in the market for GSM roaming data clearing services. These services act as clearing houses between mobile network operators, allowing subscribers to use their phones outside the countries they are registered in.
In this market, Syniverse and the BSG Group’s wireless business are among the leading companies worldwide, and are direct competitors in Europe. With the proposed transaction, the number of competitors active in Europe in that market would drop from three to two, the Commission said.
