Mergers: Commission clears Syniverse’s acquisition of MACH, subject to conditions

Following an in-depth review, the European Commission has approved under the EU Merger Regulation the proposed acquisition of Mach of Luxembourg by Syniverse of the US. The approval is conditional upon the divestiture of Mach's Data Clearing ("DC") services and Near Trade Roaming Data Exchange ("NRTRDE") services in the European Economic Area (EEA). These two types of services are technical steps of the roaming process enabling people to use their mobile phones while travelling abroad. Syniverse and Mach are the two largest providers of these services in the EEA and globally.

After a preliminary investigation, the Commission had concerns that the transaction, as initially notified, would have allowed Syniverse to raise prices or to decrease the quality of these services. Indeed, the proposed merger would combine the first and the second largest supplier, creating a dominant player with virtual monopoly market shares. The commitments offered by Syniverse to divest a significant part of Mach's assets - in particular the entirety of Mach’s DC and NRTRDE businesses in the EEA - adequately address these concerns.