The Swedish Competition Authority conducted a thorough investigation into Postnord Strålfors AB’s proposed acquisition of 21 Grams Holding AB, focusing on potential impacts on competition in the market for intermediation services.

Both companies provide services that help businesses manage digital and physical customer communications, including the distribution of invoices. The largest player in the bulk mailing distribution market in Sweden is Postnord Sverige AB, which is part of the same corporate group as Strålfors. 21 Grams has developed essential software for postage optimization, crucial for maintaining competition among postal distributors.

The investigation revealed that the acquisition could create a conflict of interest, allowing Strålfors to favor Postnord’s distribution business and potentially harm competing postal distributors. This raised concerns about strengthening Postnord’s dominant position in the bulk mailing distribution market and the competitive landscape for intermediation services.

To address these concerns, Strålfors and its parent company, Postnord Group AB, proposed commitments that would ensure the independence of Strålfors from Postnord’s distribution operations. These commitments include a functional separation of the two entities and obligations for Strålfors to offer postage optimization services on fair and non-discriminatory terms.

The decision also includes significant fines for non-compliance, amounting to SEK 300 million for Strålfors and SEK 450 million for Postnord Group AB, along with periodic fines. The commitments will be monitored by an independent trustee until 2038, ensuring compliance and promoting fair competition in the market.