The Federal Cartel Office (Bundeskartellamt) has issued a preliminary legal assessment to Vodafone Group, its German subsidiary Vodafone GmbH, and its former radio tower division Vantage Towers AG, raising serious concerns over potential antitrust violations.
The case centers on the alleged obstruction of 1&1’s market entry as Germany’s fourth mobile network operator due to extensive delays in providing access to antenna sites.
In 2021, Vantage Towers, which manages approximately 20,000 antenna sites across Germany, entered into a contractual agreement with 1&1 for shared use of a four-digit number of these sites. These sites were intended to be provided in phases through the end of 2025. However, according to the Federal Cartel Office, the rollout has been significantly delayed, with only a small portion of the agreed sites currently made available to 1&1.
Andreas Mundt, President of the Federal Cartel Office, stated:
“Based on the findings obtained so far, the delayed provision of the contractually agreed locations must be considered an antitrust-contravening hindrance to 1&1’s market entry. This delay and its negative impact on competition could and should have been avoided under the prohibition of abuse stipulated by antitrust law.”
The Office is now provisionally classifying the conduct of Vodafone and Vantage Towers as an abusive obstruction under Sections 19 and 20 of the German Act against Restraints of Competition (GWB). It argues that alternative courses of action were available to the companies, such as prioritizing 1&1’s access to certain sites or temporarily adjusting Vodafone’s own network expansion strategy.
Despite the spin-off and partial divestiture of Vantage Towers, Vodafone has maintained a significant degree of control over the company through joint ownership with two financial investors. The close operational interdependence between Vodafone and Vantage Towers has raised concerns about the transparency and fairness of infrastructure access for competitors.
The Office has also expressed concerns that Vodafone may have benefited from these delays, as they coincided with an aggressive expansion of Vodafone’s own 5G network and may have negatively influenced 1&1’s prospects in spectrum allocation decisions by the Federal Network Agency.
Negotiations had been ongoing since late 2023 to resolve the issue through voluntary commitments by Vodafone and Vantage Towers. However, the proposed commitments were deemed insufficient by the Federal Cartel Office. As a result, the Office is now considering formal enforcement measures, including an order to make the remaining sites available to 1&1 within three years, supported by additional regulatory actions.
The issuance of the preliminary assessment represents a procedural step, providing Vodafone and Vantage Towers an opportunity to respond in detail. A final decision is expected by mid-2025.
