The European Commission has cleared the proposed acquisition of German internet provider Hansenet Telekommunikation GmbH of Germany by Telefónica Deutschland GmbH, also of Germany and an indirectly wholly-owned subsidiary of Telefónica S.A. of Spain.

The Official Journal of the European Union of January 30th has published the European Commission's authorization to allow Telefónica O2 to acquire German internet provider Hansenet Telekommunikation.

The Commission concluded that the concentration would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Telefónica Deutschland belongs to the Telefónica Group (NYSE:TEF), which operates fixed and mobile telephony networks in Spain, the Czech Republic, Germany, the UK, Ireland and Slovakia, as well as in a number of countries in Latin America.

Hansenet provides broadband internet access and various telecommunications services, including fixed and data connections in Germany.

The Commission examined the effects of the proposed transaction on the provision of broadband internet access as well as on mobile and fixed telephony. The Commission found that in view of their different business focusses, Telefónica and Hansenet are not major competitors for each other in any of the relevant markets.

Moreover, both the horizontal and the vertical relationships between the activities of Hansenet and Telefonica in Germany are limited and the combined firm would continue to face a number of strong, effective competitors, including the incumbent operator Deutsche Telekom.

The OJEU published the prior publication of concentration on December 24th, 2009.