The European Commission has decided to undertake an in-depth investigation into a proposed joint venture between Daimler Chrysler AG and Deutsche Telekom AG which will operate a toll-collecting system for heavy lorries on German motorways. The Commission at the current stage has concerns that the transaction might have an adverse impact on competition in the emerging telematics services market(1) in Germany.

The joint venture called Toll Collect GmbH has been created by DaimlerChrysler and Deutsche Telekom AG which will each have a 45% stake. French motorway operator Cofiroute S.A. will hold the remaining 10% of the share capital. The three have won a tender organised by German government for the installation and operation of a toll-collecting system for loaded lorries above 12 tonnes on German motorways.

The joint venture will install tollgates necessary for the non-automated toll collection as well as controlling bridges (over the motorways in question) for automatic control. Lorries will be able to pay at the tollgate, which is likely to be the preferred solution for foreign trucks when using German motorways, or to have a device installed free of charge in the truck in order to register automatically their passages at the road toll.

Under the deal notified to the Commission on 11 November, Toll Collect will also be able to offer value-added telematics applications ranging from real-time information on traffic flows to navigation guidance and messaging between the truck company and the drivers.

After a preliminary review, the Commission considers that the toll-collecting system could become a predominant platform for the provision of telematics services for the transport and logistics sector.

German car and truck manufacturer Daimler Chrysler is already active in the telematics market and through the present operation it could possibly control to a significant extent the conditions of competition in this emerging market.

Therefore, the Commission has, at this stage, serious doubts whether the transaction can be approved in its present form.

The opening of a second-stage merger investigation is without prejudice of the Commission's final decision. The Commission now has a total of four months within which it will first carry out a detailed investigation of the deal's impact on competition in the market concerned.

Chrysler is a manufacturer of passenger cars, trucks, buses and engines. The company also offers financial services and carries out activities in the aviation, aerospace and defence industry. Services on mobility management including cross-brand fleet management are offered through its subsidiary Daimler Chrysler Services.

Deutsche Telekom provides mainly fixed and mobile telecommunication services in Germany and in some neighbouring countries. The company is also a provider of internet and telecommunication solutions.

(1)The term telematics essentially encompasses all types of on-board communication technology, e.g. an onboard unit to process data, Global Positioning System (GPS) receivers or mobile communication devices.
 

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