Feeds

EC wrong on Worldcom / Sprint deal

Court spanks Monti

  • alert
  • submit to reddit

Security for virtualized datacentres

Competition Commissioner Mario Monti suffered an embarrassing defeat in a Luxembourg court this week - it ruled that his decision on the Sprint-Worldcom merger was illegal.

Sprint and Worldcom were to merge in 2000 but called the marriage off after a distinctly negative reaction from US and European Commission regulators. The European Court of First Instance ruled that Monti should not have got involved.

The Court said that Monti should not have made a decision on the deal because Sprint and Worldcom wrote to the Commission telling them they were calling the deal off.

The verdict does not consider the rights or wrongs of the decision only whether the Commission should have issued a ruling. The Commission, the Court said, "no longer had the power to adopt the decision after the proposed merger..... had been abandoned".

The Competition Commission described the decision as "a technicality". US authorities had already ruled against the merger before the EC decision was announced.

Worldcom ended up in Chapter 11 bankrupcy protection and its chief executive Bernie Ebbers was charged with massive accounting fraud. The company now trades as MCI.

MCI welcomed the decision, telling newswires: "Today's favorable ruling will ensure that future technology services transactions will receive a fair and appropriate review." ®

Related stories

EU to approve Oracle takeover - reports
Next EC antitrust czar was Bill Gates fan
France Telecom must return state aid

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.