EU: Commission clears acquisition of Kathrein’s antenna and filter assets by Ericsson

The European Commission has approved, under the EU Merger Regulation, the acquisition of Kathrein’s antenna and filter assets (Kathrein) of Germany by Telefonaktiebolaget LM Ericsson (Ericsson) of Sweden. Kathrein is a global provider of communication technologies solutions. Ericsson is a global provider of network equipment and software, as well as services for network and business operations.

The Commission assessed possible conglomerate effects in relation to the bundling of passive antennas and filters sold by Kathrein and radio access network (RAN) equipment sold by Ericsson to mobile network operators.

The Commission’s investigation found that the transaction raises no competition concerns because of Kathrein’s and Ericsson’s limited market positions and the existence of several credible competitors. The Commission also investigated the vertical relationship between the upstream market for the supply of antenna modules procured by RAN equipment suppliers, such as Ericsson, to be integrated into active antennas.

The Commission concluded that the transaction did not raise competition concerns in this regard, in particular due to Kathrein’s limited activities in the upstream market for the supply of antenna modules and the existence of several alternative suppliers.