Voluntary functional separation by a vertically integrated undertaking

(1) A vertically integrated undertaking with significant market power notifies the Federal Network Agency, at least three months in advance, of its intention to transfer all, or a large part, of the assets of the local access network to a separate legal entity under different ownership, or to establish a separate business unit, in order to supply completely equivalent access products to all providers at the retail level, including its own business units active at the retail level. The undertaking also notifies the Federal Network Agency of any changes to that intention, and of the outcome of the process of functional separation.
(2) The Federal Network Agency examines the possible consequences of the intended transaction under subsection (1) and of any commitments under section 18(1), first sentence, point 3. For this purpose, it conducts, in accordance with the procedure of section 11, a coordinated analysis of the markets connected to the local access network. Where the undertaking submits commitments, the Federal Network Agency conducts the market review procedure under section 19. It may issue a regulatory order, under the procedure of section 14, against the undertaking, including the legally or operationally separated business unit where it holds significant market power on a market, where commitments declared binding are not sufficient to achieve the objectives of section 2. Section 33 remains unaffected.