The Czech competition authority has granted conditional approval for the merger between car dealers CB Auto a.s. and AUTO FUTURE, s.r.o. This merger pertains to the retail sale and servicing of personal and light commercial vehicles.

CB Auto primarily sells new vehicles from brands such as Škoda, Volkswagen, Seat, Cupra, Mazda, and KIA, along with authorized servicing and related sales of spare parts and accessories. Meanwhile, AUTO FUTURE focuses on new vehicle sales from brands including KIA, Fiat, Jeep, Alfa Romeo, Dodge, and Ram, as well as authorized servicing and used vehicle sales.

The transaction was initially notified under a simplified procedure, but the authority requested additional information, leading to a standard review process. The authority's preliminary assessment raised serious concerns about potential significant harm to competition, particularly in the KIA service market in the South Bohemia region, where a competitor with substantial market power would emerge.

In response, the parties proposed commitments that the authority deemed sufficient to preserve effective competition in the market. These commitments include the requirement for CB Auto to sell a part of its business related to KIA authorized servicing within a specified timeframe. The service center must be transferred to an entity that is not financially, personally, or otherwise connected to CB Auto.

Due to the swift proposal of commitments, the decision was made in the first phase of the review process. Further details will be available in the public version of the decision once trade secrets are removed.