On 29 June, the Norwegian Competition Authority (NCA) issued a Statement of Objection (SO) against Elkjøp’s proposed acquisition of Eplehuset. On 31 July, however, the Authority informed the parties that the transaction had been approved, allowing the acquisition to proceed as planned.
Oslo Economics assisted Elkjøp and Eplehuset through their legal advisers, Kvale and Arntzen Grette, after the NCA in April of this year considered prohibiting the transaction.
The NCA’s concerns were that the acquisition would eliminate competitive pressure between the parties in the sale of Mac and iPad products to consumers, and thereby lead to a substantial lessening of competition in the form of higher prices or reduced expertise and advisory services relating to these Apple products.
Oslo Economics contributed to the process by addressing the NCA’s assessments and conducting its own analyses of the competitive effects of the transaction. One aspect that made the case particularly interesting was that the Authority’s theories of harm concerned competitive effects relating to products from a single supplier with strong market power and control over retailers. Standard economic theory suggests that such suppliers use this control to prevent retailers from exercising market power downstream, for example by increasing prices.
The Oslo Economics team consisted of Jostein Skaar, Arne Rogde Gramstad and Emil Mathias Strøm Halseth.
We congratulate Elkjøp and Eplehuset on the approval of the transaction.
Learn more about how we assist clients in merger reviews and competition law matters here.
