Converge or conglomerate

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Competition law implications for Technology Media and Telecommunications

When it comes to convergence, TMT companies are relentlessly driving disruption, even as that same force ceaselessly reshapes them. Their market boundaries continually dissolve, reform and dissolve again. Content distributors are transforming into content producers, and vice versa; service providers are becoming tech companies; and technology companies are driving dramatic change in virtually every sector of the economy as enablers or new competitors to incumbent players. Competition escalates everywhere, and new entrants move from the far horizon to existential threat, seemingly overnight.

Meanwhile, the range of digital disruption and convergence suffuses business with unprecedented complexity, while digitally empowered customers demand more and more — and they want everything now. The prospect of full vertical integration is drawing closer. Many players are extending their value-chain position to take advantage of new monetization opportunities. Thus, there is an increasingly symbiotic relationship between content and connectivity. Alliances unlock new vertical opportunities, but partnerships have failed to deliver in the past.

Partnerships speed entry into new ecosystems, but their long-term effectiveness is questionable. At the same time, non-TMT businesses are playing a growing role in TMT subsectors. Both private equity (PE) and players from other industry sectors are increasing their exposure to TMT.

What role can transactions play in strengthening strategy? And what are the competition law implications for the TMT sector? Find out by reading the full article here.

EY legal contacts:
Kiran Desai

 

Kiran S. Desai – EY Global EU Competition Law Leader

 

 

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Richard Goold – TMT Sector Leader Law