EC extends review of AIB & BoI tech venture

dahamsta

ElectricNews.net

The [Irish Times] reports that the European Commission has extended by two weeks its review of a joint venture of IT services by AIB and the Bank of Ireland. The new venture company, Sigma, would manage the banks' internal computer networks and help desks, as well as provide back-up services for the banks. The venture, which intends to employ 700 staff, is aimed at cutting costs. The Commission did not say why its review period is being extended.

b20uvkft6m5xwg

Sounds like a potential "cosy cartel" for IT systems in the banking industry I'd suspect, but then again we cant be sure. Cant seem to find anyhting on this apart from ENN, btw. I'll keep an eye out to see if theres further insight into the reasoning

I'd heard about Sigma before but I didn't know it was an AIB/BoI joint venture.

--

dahamsta

I'd heard about Sigma before but I didn't know it was an AIB/BoI joint venture.

Sigma is also a wireless company: www.sigma.ie

C'mere 80p, you're good at stuff like this: How would I complain about this? I had a poke around the Competition Commission website, but nothing jumped out at me.

adam

b20uvkft6m5xwg

Jees Adam,
You always pick the tough ones to start a campaign against

Bit like the comms crisis, you as an indivdual have no real standing as a complainant. For breaches of competition policy to be investigted it would have to come from within the DoPE or from a formal complaint from a rival bank. (Which is what I suspect has caused the re-investigation from the EU).

As for what you can do:
I'd start with your Local TD or If you've burnt your boats with them, try the consumer Associations who in-turn might try and drum up a bit of bad press about it and in turn give a bit of a nudge to the DoPE.

hth

--
5 mins later...
Adam on register.com -> www.saynotosigma.com

dahamsta

Nah, I have no notion of campaigning on this, I just think someone should complain to someone about it. The banks are royally screwing us over here (everywhere in fact) as it is, we really shouldn't accept any more efforts to control the market. Escecially when the sector they're trying to control has such a high growth rate.

Anyway, I asked the Irish Bank Officials' Association for help, and Cathy there very kindly told me that I "can either e-mail the European Competition Commission on comp-mergers@cec.eu.int" or "write to the Competition Directorate General at: European Commission, Directorate General for Competition, B-1049, Brussels". So I think I'll do the latter, get a few friends to co-sign it, and CC it to the CA and my local TD's as you suggest. Thanks.

Also and FYI, ENN is saying that the Independent is saying (sorry) that it's the Irish Government that asked for the extension, so it could investigate the joint venture itself. We might as well just hand over complete power to Brussels now, our own Government hasn't a clue.

adam

phoenix2181

the joint venture with BOI & AIB will not be taking place, press releases will be going out this afternoon, I work for PSIR who look after the BOI's computer network, IBOA had let this slip on wenesday but was officailly confirmed at 12 pm today

b20uvkft6m5xwg

On the ball there Phoenix...
http://breaking.tcm.ie/story.asp?j=40638913&p=4x639536&n=40639601&x=

Bank of Ireland and AIB drop IT merger
23/08/2002 - 5:29:23 pm

Bank of Ireland and AIB have abandoned a plan to merge their information technology operations.

The proposed joint venture - seen by some observers as presaging a full merger of the two companies - has been dropped because of a delay in securing clearance from the European Commission.

In a joint statement, the two banks said the decision had been taken because of an indication from the Commission that the project - which was to have been known as Sigma - would be subjected to a second stage of detailed investigation.

AIB and Bank of Ireland added that they had concluded that such an extended process would 'create great uncertainty and would be unduly costly', as well as having an adverse impact on customer service and being de-stabilising for staff.

Earlier this week, the bank workers’ trade union, the Irish Bank Officials’ Association, called on the banks to clarify their stance on the project, and underscored their concerns over its impact numbers - identifying the development as a pre-cursor to attempts to create a fully merged bank.

The association welcomed the formal scrapping of the idea.

Assistant General Secretary John O’Connell said the decision could spell the end of some senior management’s 'fantasy project' of a full merger.

The association had claimed that a merger would result in reduced competition, the closure of up to 100 branches countrywide and the loss of up to 5,000 jobs in the banking sector.

Mr O’Connell added that the IBOA has now been advised that the proposed merger of the IT facilities has been abandoned.

“Based on advice we have received, we are confident that the prospect of a full merger of both banks, which has been talked up by some members of senior management in the past few months, is no longer a reality.”

The union leader urged the establishment of a forum on the future of banking to allow for a full and inclusive debate on the future direction of banking in Ireland.