UOKiK has objections to the takeover of a hypermarket in Bielany Wr. by Carrefour

by   CIJ News iDesk III
2021-07-22   09:03
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The Office of Competition and Consumer Protection (UOKiK) issued objections to Carrefour Polska taking over the retail space used by the Tesco hypermarket in Bielany Wrocławskie, the Office announced. According to him, the transaction may lead to restriction of competition on the local market. However, the reservations do not prejudge the final decision on this matter.

"The market research carried out shows that the concentration may lead to a situation in which Carrefour Polska will not have to compete on the local market with other hypermarkets. Moreover, consumers living in the vicinity of the acquired hypermarket would have a limited choice of stores where they can do their shopping. to this concentration," said the President of UOKiK Tomasz Chróstny.

The subject of the concentration is the acquisition by Carrefour Polska of part of the property of Ingka Centres Polska in the form of retail space used for the needs of the Tesco hypermarket in the Aleja Bielany Shopping Center in Bielany Wrocławskie, it was recalled.

In this case, it was necessary to conduct a market research and verify the data presented by the acquiring company in the application for consent to the transaction. Therefore, the President of the Office referred the case to the second stage.

The analysis of this case and the previous jurisprudence of the President of the Office and antitrust authorities of other countries show that the area of ​​competition for hypermarkets for customers is an area with a radius of up to 25 minutes by car. This is the maximum distance consumers are usually willing to travel when looking for another hypermarket.

The Office explains that in cases where there is a reasonable probability of a significant restriction of competition as a result of the concentration, the President of UOKiK presents the entrepreneurs or undertakings participating in the concentration with objections to the planned transaction. The reservations contain a justification and do not prejudge the final outcome of the proceedings.

According to the regulations, entrepreneurs have 14 days to respond to the reservations. This time limit may be extended at their request for a further two weeks.

Source: UOKiK and ISBnews