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
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