21-02-2011

Poland Blocks Media Merger

By Katarzyna Grynienko

    The Polish government has forbidden the merger of EM&F Group, a Polish chain of press and media stores, with www.Merlin.pl, the most popular Polish seller of audiovisual, music and press products online.

    The Polish Office of Competition and Consumer Protection (UOKiK, www.uokik.gov.pl) decided that the merger would create a disadvantage to other sellers on the market, especially distributors of films and books. The merger would give them over 40% of the total media market shares, creating an unfair monopoly.

    Empik Media and Fashion Group (www.emf-group.eu) protested the results of the research. "We were deeply surprised to be informed about the refusal issued by the Office of Competition and Consumer Protection. ...We thoroughly examined all aspects related to the investment. Based on publicly available market analyses as well as in accordance with research by independent companies, we ensured beyond all doubt that the merged entities would not assume the dominant position on the market and consequently that the merger should be allowed." the company said in a statement.

    On 18 February 2011 the company announced that it will appeal the decision. Meanwhile, Merlin.pl (www.merlin.pl) is considering mergers with other, smaller investors. The preliminary contract between EM&F and Merlin.pl lasts until the end of February 2011. If the merger cannot be completed, EM&F plans to create its own online platform to sell films, music and books in Poland.