Polish Authority Approves WPM's Acquisition of Invia Amid Antitrust Concerns
The Polish Competition Authority has approved the acquisition of Invia Group SE by Wirtualna Polska Media S.A., following an investigation into potential anti-competitive practices. The ruling emphasizes the need for compliance with competition laws in the tourism sector.
30.03.2025 | Polish competition authority (DKK)
The Polish Competition Authority (DKK) issued Decision No DKK-85/2025, addressing anti-competitive practices by certain businesses, including potential price-fixing and market manipulation. The decision outlines penalties for these violations and underscores the importance of adhering to competition laws to ensure fair market conditions.
This ruling serves as a crucial reminder for competition law advisors to monitor client practices closely, ensuring they do not engage in similar anti-competitive behaviors. Advisors are encouraged to guide clients on compliance best practices and the potential consequences of violations, as highlighted in this case.
On March 31, 2025, the President of the Office of Competition and Consumer Protection (UOKiK) approved Wirtualna Polska Media S.A.'s acquisition of Invia Group SE. This decision followed an antitrust investigation initiated by WPM, which sought to acquire Invia, a company providing tourism services in several Central European countries, including Poland.
The investigation revealed that WPM holds a market share of approximately 20-30%, while Invia has around 5-10%. The combined market share post-acquisition would remain below the 40% threshold typically associated with a dominant market position, indicating that competition would not be significantly hindered.
UOKiK's analysis included market research involving major tour operators, which suggested that the merger would not lead to substantial price increases or reduced service options for consumers. The findings indicated that all operators, regardless of size, maintain similar pricing structures across various sales channels, reducing the likelihood of any single entity exerting undue influence over pricing or service offerings.
While the merger is expected to enhance WPM's market presence, it does not pose a significant threat to competition in the tourism sector. Competition law advisors should monitor the impact of this consolidation on smaller operators and overall market dynamics, particularly regarding pricing strategies and service diversity. The decision also emphasizes the importance of thorough market analysis in evaluating potential mergers and acquisitions within competitive frameworks.