M-commerce joint venture triggers war

UK cellular operator, Three has complained to European Union regulators about a mobile commerce effort set up by its rivals, saying it is designed to 'freeze out' competition, reveals ZDNet.

According to The Guardian, in June, O2, Everything Everywhere and Vodafone revealed their m-commerce joint venture to sell mobile advertising and develop mobile payment systems.

Three, the only other network operator in the UK, was not invited to take part.

Three's regulatory affairs director, Stephen Lerner, says: “The planned and explicit exclusion of Three from the proposed UK m-commerce joint venture is designed to weaken Three's ability to be a competitive force in the UK, and denies the initiative's claimed ambition to be a 'one stop shop' for m-commerce.”

Three has made representations to the European Directorate General for Competition, saying its rivals should not be allowed to proceed.

The joint venture is likely to be viewed as a merger by the commission, and will need its approval. It is understood the partners have begun discussions with the commission, and will formally apply for permission.

However, Total Telecoms reports that Everything Everywhere, O2 and Vodafone strongly deny the allegations, noting the venture will be open to participation from third parties, including Three.

“The fact that other companies are not shareholders in the venture has no impact on their ability to benefit from the technology it will develop,” reads a joint statement from the three operators.

“In fact, the success of the venture depends upon its technology being available so that anyone can create m-commerce services and reach the widest possible audience.”