Commission approves acquisition of Alcatel-Lucent SA by Nokia Corporation with Condition
The Commission has completed its assessment on the notification of acquisition Alcatel-Lucent SA by Nokia Corporation. Nokia Corporation is a business operators domiciled in Finland, while Alcatel-Lucent SA based in France. Nokia Corporation and Alcatel-Lucent SA are doing their business in Indonesia, both directly and indirectly. The acquisition took place in France which took effect legally on January 7, 2016. Nokia Corporation required making notification to the Commission because the asset value and combined sales value of acquisition meet the threshold provisions under Regulation No. 57 Year 2010.
Commission had been assessing the acquisition Alcatel-Lucent SA by Nokia Corporation since June 15, 2016. Nokia Corporation and Alcatel-Lucent SA are two companies which conducts business activities in the field of telecommunication network in Indonesia. In the assessment process, the Commission conducted a study of the structure of the telecommunications market in the networking industry and held discussions with entrepreneur’s suppliers, competitors, consumers, and industry experts in the field of telecommunication networks.
From the results of the assessment, the Commission believes that the acquisition of Alcatel-Lucent SA by Nokia Corporation does not result in monopolistic practices and / or unfair business competition. Nevertheless, the Chairman of KPPU, Dr. Syarkawi Rauf asserts that there are several matters that must be fulfilled by Nokia Corporation, including:
- To ensure the sustainability of Nokia Corporation Alcatel-Lucent SA product or offering alternative solutions/replacement, if there are products that are out of date.
- To always uphold the principle of fairness, reasonable, and non-discriminatory in conducting business activities in the field of telecommunication networks.
Syarkawi further explained that the opinion of the international merger between companies headquartered in Finland and France also requires a merger intended to consider the interests of the telecommunications industry in Indonesia, in this case support for increasing the efficiency of telecommunications operators in Indonesia.
“International merger is expected to not harm the interests of consumers or end users in Indonesia with an expensive telecommunications costs, as well as the misuse of Nokia which is having stronger position in the market“, said Syarkawi.