The Spanish Competition Authority (CNMC) has authorized Ebiquity's acquisition of Mediapath, contingent upon certain commitments aimed at preserving competition in the advertising investment audit services sector in Spain. This acquisition is significant as it affects how advertisers evaluate the performance of their advertising investments.

Ebiquity, a market leader in advertising investment auditing since Accenture exited the market in 2018 due to conflicts of interest, is set to strengthen its position further with this acquisition. Mediapath, which entered the market in 2020, is Ebiquity's main competitor, and the merger will result in substantial market share overlaps.

The CNMC has identified that while there are barriers to entry in this market, they are not insurmountable. The authority noted that even a smaller client portfolio like Mediapath's could still provide quality services. The market has shown some dynamism with the entry of competitors from outside Spain, and advertisers have some negotiating power, as auditing services are not essential for their operations.

However, the merger could lead to a near-monopolistic position for Ebiquity, potentially allowing it to hinder market access for future competitors. The CNMC expressed concerns that if Ebiquity imposed exclusivity clauses or long-term contracts, it could limit competitors' growth and market entry.

To mitigate these risks, Ebiquity has committed to not including exclusivity clauses in contracts with advertisers, allowing them to share their advertising investment data with third parties, limiting contract durations to one year, and communicating these commitments to its commercial users. The CNMC believes these measures are sufficient to maintain effective competition in the market and will monitor compliance and market effects.