Vodafone and Vantage Face Scrutiny in Germany

German competition authority accused Vodafone and Vantage Towers of potentially violating antitrust law in their dealings with the country’s newest operator 1&1. The issue surrounds the provision of contracted antenna sites for use by 1&1 following a deal between the parties signed in 2021.

Following a complaint by the newcomer in 2023, regulator Bundeskartellamt has been looking into the issue and has been in discussions with Vodafone over a potential solution since late in that year. However, the regulator branded the commitments proposed in those talks as on the whole unsuitable and issued its initial assessment of the case which has gone to the parties involved for comment.

The grievance surrounds what the regulator described as massive delays in providing agreed antenna sites to 1&1, noting the newcomer is still unable to use more than a small fraction of those in its contract. It went on to state that Vodafone had significantly expanded its 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.

The regulator deems access to the infrastructure as an essential factor to 1&1’s own network, with its ability to compete significantly impeded by delays. “Given the severe consequences for competition in the markets affected, the Bundeskartellamt’s preliminary assessment is that Vodafone’s and Vantage Towers’ practices represent abusive conduct according to regulations in the country,” it added. It suggested the accused companies could have responded in many ways to avoid the lengthy hold-ups in fulfilling the 1&1 contract.

“The Bundeskartellamt is considering not only determining that the conduct is anti-competitive but also imposing an obligation to provide the relevant sites within three years and taking further measures in connection with this decision”, it concluded. The regulator expects to make a final decision on the case in mid-2025.