French competition authority Autorité de la Concurrence, has blocked the acquisition of joint control of a Géant Casino hypermarket by Soditroy ve Association des Centers Distributeurs E. Leclerc (ACDLec) for its serious competition concerns relating to price increases for consumers. This is the first blocking decision issued in the field of merger control by the Autorité de la concurrence.
In the decision, the relevant product markets considered by the Autorité were “upstream consumer product supply market” and the “downstream retail distribution markets predominantly for food products”. In the light of its investigation, Autorité found that the merger would have created a duopoly between the hypermarket retailers Carrefour and ACDLec in the conurbation of Troyes, which would have facilitated tacit coordination in the catchment area concerned. Autorité also found that the merger would also have led to an increase in prices due to the disappearance of any competition between the parties and thus, significant loss of diversity for consumers. Autorité also evaluated that the commitments proposed by the parties were not considered to be tailored to eliminating the competition concerns identified and the efficiency gains would not have offset the risks linked to the merger.
As a result, Autorité blocked the proposed merger. (Autorité de la Concurrence – 28.08.2020)
|
NAZALI TAX & LEGAL |