Brussels, 27/03/2009 (Agence Europe) - On Thursday 26 March, the European Commission cleared the proposed acquisition of the business activities of Dutch firm MMD-Monitors & Displays Holding BV (“PhilipsHodCo”) - currently controlled by Koninklijke Philips Electronics N.V. (Philips) - in branded PC monitor and electronic displays (digital public signage) by Bermuda-based TPV Technology Limited, a manufacturer of monitor displays. Digital public signage products are electronic displays installed in public spaces, which transmit images for the purpose of entertainment, information or advertising.
The Commission says that the proposed transaction would lead to a small overlap in the market for liquid crystal display (LCD) branded PC monitors, where both TPV and Philips HoldCo are active; however, only TPV is involved in the production of PC monitors at original equipment manufacturer (OEM) level and cathode ray tube monitors. The Commission's investigation confirmed that the horizontal overlap between the activities of TPV and Philip HoldCo is very limited and that, under all possible alternative market definitions, the merged entity would continue to face several strong, effective competitors after the proposed transaction.
Furthermore, the Commission notes, the operation would create two vertical relationships: TPV's activities as a manufacturer of both LCD PC monitors and digital public signage displays are upstream of Philips HoldCo's business on the markets for branded PC monitors and branded digital public signage displays. The Commission found, however, with regard to both vertical relationships, that the merged entity would neither have the ability nor the incentive to restrict access to TPV's OEM products because at OEM level several competitors supply similar products and many competitors for the branded products are, in any case, vertically integrated. The Commission also found that the merged company would be unlikely to engage in a strategy of closing off customers by denying competitors of TPV at the OEM level access to Philips HoldCo's demand for their products, essentially because of Philips HoldCo's limited market presence at the downstream level. (O.L./transl.rt)