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Telecom watchdog barks
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November 24, 1998: 6:09 a.m. ET
Regulator questions AT&T's $11B link with British Telecom
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LONDON (CNNfn) - The European Commission has indicated it will undertake a full-blown investigation of AT&T's joint venture with British Telecom.
The Commission said earlier this month that it had received complaints from competitors about the joint venture, which was announced in July and is expected to have annual revenues of $11 billion.
Analysts said an investigation could prove an obstacle for the groups.
"It's a big deal," said a London-based analyst who didn't wish to be named, "and the two companies have very strong positions in several areas, especially in the transatlantic market."
The Commission could require disposals, or freer access to capacity for competitors, analysts said.
The link-up aims to offer a global network of voice, data and Internet services to major corporations.
The companies had expected the deal to take about a year to get all the regulatory approvals needed.
A BT (BT.A) insider admitted the investigation was expected, but said "We don't see any major competition problems."
AT&T (T) recently pushed its marketing operation into top gear in an attempt to galvanize the agreement with BT.
In London BT shares slipped 25 pence to 870 pence.
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AT&T
British Telecom
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