LEGAL PRACTICE: MERGERS- FRANCE - DISTRIBUTION NETWORK - COMPETITIVE ANALYSIS

Analysis of intra- and inter-brand competition in mergers within distribution networks: Review of the French Competition Authority’s decision-making practice in the retail sector

During the assessment of an acquisition by the head of the network of one of its members in the spring of 2018, in the food retail sector, the Autorité de la concurrence specified the manner in which it conducts the competitive analysis of this type of merger. Thus, even in the absence of a change of brand from a target point of sale, these mergers are likely to restrict competition when the member of a franchise network had commercial autonomy vis-à-vis its head of network or when it had the contractual possibility of joining a competing network in the medium term, in the presence of significant market shares of the new entity. This article presents the analysis followed by the Autorité in the retail sector within a distribution network, in line with its opinion of December 7, 2010 on the affiliation contracts of independent stores in the food retail sector and a precedent in litigation. It also gives the opportunity to make a short retrospective of its practice in assessing merger in the retail sector since 2009.

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. "Green grape, ripe grape, raisin, all is change, not to no longer be, but to become what is not yet [1]." Introduction 1. On April 27, 2018, the French Competition Authority (hereafter "the Authority") authorized the acquisition of two stores operated under the Carrefour name by the Carrefour group, subject to an unprecedented [2]commitment . Indeed, in order to meet the competition concerns identified in a local market for food-dominant retailing, the Carrefour group has undertaken to sell one of its stores to an independent buyer and to enter into a licensing agreement for a period not exceeding three years at the same time. Although the termination of

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  • SGAE - Secrétariat Général des Affaires Européennes (Paris)

Quotation

Jérôme Vidal, Analysis of intra- and inter-brand competition in mergers within distribution networks: Review of the French Competition Authority’s decision-making practice in the retail sector, May 2020, Concurrences N° 2-2020, Art. N° 93977, pp. 256-269

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