Decision Nº M/04/055 from Competition and Consumer Protection Commission, 2004-10-15

• Jurisdiction: Ireland
• Parties: B.I.C. Systems Group,British Telecommunications
• Date: 15 October 2004
• Decision Date: 15 October 2004
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/04/055

Determination of the Competition Authority

Determination No. M/04/055 of the Competition Authority, dated 15

October 2004, under Section 21 of the Competition Act, 2002

Notification No. M/04/055 –The proposal by British Telecommunications

plc to acquire B.I.C. Systems Group Limited

Introduction

1. On 22 September 2004 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 British Telecommunications plc (“BT”) would

purchase the entire issued share capital of B.I.C. Systems Group Limited

(“B.I.C.”). The notified transaction is hereinafter described as “the proposed

acquisition”.

The Parties

2. BT, a subsidiary of BT Group plc, has international presence. It is principally a

supplier of telecommunications services, high-end broadband and Internet

products and services, and information technology (“IT”) solutions. A BT

subsidiary, Esat Telecommunications Limited, trades as Esat BT and supplies

telecommunications products and services in the State.

3. B.I.C., the target, is based in Northern Ireland. B.I.C. supplies information

communications technology (“ICT”) products and services in the UK, Northern

Ireland and the State (through a Dublin-based subsidiary, B.I.C. Systems

(IRL) Limited).

Analysis

4. Esat BT principally provides telecommunication products and services in the

State: any IT services it provides are described as being incidental to its main

activity. B.I.C operates in three main sectors in the State: supply of IT

hardware and software (about €[…] annual turnover); IT consulting and

managed services (about €[…] annual turnover); and IT training (about €[…]

annual turnover). The parties therefore operate in distinct business sectors

in the State, though those sectors could possibly be described as segments of

an overall IT and telecommunications industry.

5. The commercial rationale of the proposed acquisition is focused on Northern

Ireland, where the parties overlap in the supply of IT services and solutions.

BT’s Northern Ireland division (“BTNI”) supplies a range of IT services to

corporate and public sector customers, as does the target. Post-acquisition,

BTNI would acquire skilled B.I.C personnel and could offer a wider portfolio of

IT services to customers in Northern Ireland.

6. Unlike the situation in Northern Ireland, there is minimal overlap between the

parties’ business activities in any industry for goods or services in the State.

Therefore the proposed acquisition would not substantially increase

concentration in any industry in the State.

Determination

The Competition Authority, in accordance with Section 21(2) of the Competitio n

Act, 2002, has determined that, in its opinion, the result of the proposed

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