Vodafone, Vodafone Germany and Vantage Towers are accused of deliberately obstructing the progress of market entrant 1&1, failing to comply with contracted obligations
In a preliminary legal assessment, Germany’s competition watchdog, Bundeskartellamt, has upheld the complaint filed by 1&1 in February 2023 (formerly known as Drillisch). 1&1 believes Vodafone Germany, its parent company Vodafone Group and spin-off Vantage Towers engaged in anti-competitive behaviour by restricting access to antenna sites in contravention of the contract between 1&1 and the parties.
1&1, controlled by billionaire Ralph Dommermuth, gained spectrum and a licence to become the country’s fourth national mobile player, offering 5G-only services, as part of the spectrum auction in 2019.
Constant struggle to comply
1&1 has consistently struggled to activate service from the specified number of sites that that are part of its licence conditions although Vantage Towers, which was spun out by Vodafone, was contracted to provide access to specified sites in 2021.
A statement from Bundeskartellamt noted, “In late 2021, Vantage Towers concluded an agreement with 1&1 on the co-use of a number of antenna sites in the four-digit range, a project which was to be realised in several stages until the end of 2025. Later on it was agreed to postpone the deadlines for the agreed provision of antenna sites for one year.
“However, since the agreement was reached, there have been massive delays in providing the agreed sites to 1&1. Currently 1&1 is still not able to use more than a small fraction of the contractually agreed sites. In contrast to this, Vodafone has significantly expanded its own network in the years following the agreement and upgraded large parts of this network to the 5G standard, including the sites that were meant to be used by 1&1.”
Significantly impedes ability to compete
“Using the contractually agreed sites is an essential factor for 1&1 in building up its own mobile network, a process which has now been greatly delayed. According to the Bundeskartellamt’s preliminary assessment, this development significantly impedes 1&1’s ability to compete.”
Andreas Mundt, President of the Bundeskartellamt, said, “Based on the findings to date, the delay in the contractually agreed provision of sites is to be considered an anti-competitive impediment to 1&1’s market entry as a fourth network operator. According to the information available to us at this stage, the delay and its negative effects on competition in the relevant markets could, and in view of the prohibition of abusive practices under competition law, should indeed have been avoided.
Vodafone and Vantage will now be asked for comments on the competition authority’s initial findings.
