The Office Blocks Concentration Between the Czech Post and PNS
The concentration would lead to the creation of an undertaking with a dominant position, which would result in a significant distortion of competition in relevant markets. The first-instance decision is not yet final and may be appealed within 15 days.
Within the context of the proposed transaction, Česká pošta, s.p. (hereinafter referred to as “the Czech Post”) sought to acquire the possibility of exclusive control over assets representing a part of the undertaking První novinová společnost a.s. (hereinafter referred to as “PNS”), which is mainly engaged in the delivery of postal items to final addressees. After a detailed in-depth examination of the concentration parameters and an analysis of its possible impacts, the Office concluded that it would result in a significant distortion of competition in the relevant markets for the delivery of ordinary mail, the delivery of addressed direct mail, the delivery of unaddressed direct mail, the distribution of subscriptions and the delivery of printed matter (i.e. magazines) in the Czech Republic.
In the market for the delivery of ordinary mail and addressed direct mail, the dominant position of the Czech Post would be significantly strengthened or a full monopoly would be created, as the only major competitor would be removed from the market. In the market for delivery of unaddressed direct mail, the concentration between the second and third largest players would result in a loss of significant competitive pressure. In subscription distribution and delivery of printed matter, the transaction would eliminate a potential competitor. If the concentration were to be approved, the removal of competitive pressure from the relevant markets could result in a deterioration in the quality of service and, in particular, an increase in prices for customers.
Merger prohibition is the most stringent measure which the Office applies only in very exceptional cases where a risk of a substantial distortion of competition in the market occurs.
Press Unit of the Office for the Protection of Competition
23/080 – S0467/2021
2024-04-23 / EP ENERGY TRADING Infringed Competition Act by Early Implementation of Merger With Gazela Energy The Office for the Protection of Competition (the Office) imposed a fine of CZK 18,840,000 on the undertaking EP ENERGY TRADING. for concluding a concentration between undertakings prior to the notification...
2024-04-18 / Sector Inquiry on Waste Management The Office for the Protection of Competition (the Office) has initiated a large-scale sector inquiry focused on waste management. Over the next two years, the Office shall obtain information from all...
2024-04-09 / Zásilkovna will share pick-up points thanks to the intervention of the Office, more options for consumers The Office for the Protection of Competition (“the Office”) accepted commitments from an undertaking Zásilkovna s.r.o. consisting of an amendment to the contractual terms and conditions concluded...
2024-04-05 / Fine of CZK 8 million for Another Pet Food Distributor Forbiding Lower Prices By the first-instance decision, the Office for the Protection of Competition (“the Office”) imposed a fine of CZK 8,656,000 on the undertaking Dibaq a.s. for entering into prohibited agreements on...
2024-04-03 / The Office Imposed a Fine of CZK 72 million on Distributor of Moulinex, Rowenta, Krups and Tefal Products The Office for the Protection of Competition (hereinafter referred to as “the Office”) imposed a fine of CZK 72 333 000 on the undertaking Groupe SEB ČR s.r.o. for prohibited agreements on resale...
2024-02-13 / The Office Imposed a Record Fine of CZK 125 million on ELECTROLUX for Anticompetitive Conduct The Office for the Protection of Competition (hereinafter referred to as “the Office”) punished the undertaking ELECTROLUX, by imposing a fine of CZK 125 404 000 for long-term anticompetitive conduct...
2024-01-19 / The Office Will Share Its Experience Using the DATACROS Tool The results of the Datacros II project, which focuses on investigating corruption, organised and financial crime using innovative techniques, will be presented on Tuesday 30 January 2024 through a public...
2024-01-16 / The Office presented a number of possibble legislative proposals to support Efficient competition The Office for the Protection of Competition drafted a proposal of possible legislative changes. The purpose of such amendments is to increase the effectiveness of the Office, in particular the detection...
