Telefonica SA (TEF) and Royal KPN NV are testing European regulatory stipulations with their upcoming merger of mobile-phone units in Germany. 

Spanish mobile device company Telefonica Deutschland Holding AG (02D) has agreed to purchase KPN's E-Plus in a deal worth EUR 8.1 billion (USD 10.7 billion), announced the former Dutch mobile stronghold earlier today.

Telefonica and KPN's customers totaled around 43 million by the end of March and the chairmen had discontinued talks of a merger the previous year.

The combination of the two mobile units, Germany's third- and fourth-biggest wireless carrriers, will be placed under the scrutiny of the European Commission. 

The commission had previously denied Vodafone's attempt to combine with a competitor in Greece. EC imposed several concessions before giving Hutchison Whampoa to merge the two smaller, Austrian operators.

EU Competition Commissioner Joaquin Almunia will have to treat the case on the facts of matter, Ryan Heath, a spokesman for Kroes, a former antitrust commissioner, said in an interview with Bloomberg Television today.

Kroes spokesman Ryan Heath said that Joaquin Almunia, EU Competition Commissioner, will have to treat the case accordingly to the facts of matter in an interview earlier today. 

"We're keen to see more cross-border consolidation," Heath added.