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

CourtCompetition and Consumer Protection Commission (Ire)
Submitted Date28 April 2003
Decision Date26 May 2003
Decision NumberM/03/009
PartiesPhilips,Accton
StatusCleared (Phase 1)
Date26 May 2003
Determination of the Competition Authority
Determination No. M/03/009 of the Competition Authority, dated 26th May 2003,
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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