Decision Nº M/03/009 from Competition and Consumer Protection Commission, 2003-05-26

• Jurisdiction: Ireland
• Date: 26 May 2003
• Submitted Date: 28 April 2003
• Decision Date: 26 May 2003
• Parties: Philips,Accton
• Decision Number: M/03/009
• Court: Competition and Consumer Protection Commission

Determination of the Competition Authority

Determination No. M/03/009 of the Competition Authority, dated 26th May 2003,

under Section 21 of the Competition Act, 2002

Notification No. M/03/009 – Joint Venture between Koninklijke Philips

Electronics NV and Accton Technology Corporation

Introduction

1. On 28th April 2003 the Competition Authority, in accordance with Section 18 (1)

of the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a

proposal whereby Koninklijke Philips Electronics NV (“Philips”) and Accton

Technology Corporation (“Accton”) would transfer their existing wireless

technology businesses to a new joint venture company “Accton and Philips

Wireless Networking” (“APWN”).

The Parties

2. Philips is a multinational electronics corporation active in lighting, consumer

electronics, domestic appliances and personal care, semi-conductors, and medical

systems.

3. Accton is a Taiwanese original design manufacturer of data communications and

telecommunications equipment.

The Joint Venture

4. Four general categories or wireless technology products will be transferred by the

parties to APWN: WLAN data networking products, which is the only product

category where both Accton and Philips are contributing activities to APWN,

WLAN Home Entertainment products, ASDL (broadband) and Bluetooth

products. APWN will be established on an indefinite basis and will be jointly

controlled by Philips and Accton.

Analysis

5. Market investigations have shown that wireless technology products are

manufactured in the Far East and sold around the world. Philips is in the early

stages of developing a portfolio of wireless products and it does not sell any

WLAN products into Ireland. Accton manufacturers a selection of wireless

technology products and does not have a large presence in the State in this area:

approximately 5%. Accordingly there is no overlap of the parties’ activities in

Ireland in the wireless technology products which will be contributed to APWN.

There exist a number of competitors which will continue to exercise a competitive

restraint on APWN.

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