Pulling the deal marks a setback for T-Systems CEO Adel Al-Saleh, who since being hired at he start of 2018 has reduced staff, closed offices and sought to hive off business lines that are not expected to generate profitable growth.

In DT's results for Q1 2019, T-Systems showed flat revenues of €6.9 billion, blaming continued declines in its traditional IT business as well as investments in growth areas and shifting to an IP network.

Cartel Office chief Andreas Mundt in a statement on Friday that IBM held a dominant position here in the European Economic Area which would have been further strengthened by acquiring personnel and essential infrastructure from its competitor, T-Systems.