Sprint-WorldCom merger hits EC hurdle

The European Union has said it has serious concerns over the $130bn planned merger between MCI WorldCom and Sprint, with reports predicting that MCI WorldCom may be forced to sell off its Internet backbone business, Uunet.

Mario Monti, the EU Competition Commissioner, is expected to send a list of objections to the companies in the next few days. He said his concerns range from the deal's impact on Internet access to transatlantic telecoms services and phone services for multinationals.

The European trade union, Union Network International, has also registered its concerns with the EC. It said the combined company's share of the global market would exceed 50 per cent, and that would have a negative impact on the market.

MCI WorldCom had previously ruled out selling Uunet and favoured selling Sprint's Internet backbone business.

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