Communication
The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.
CCA launches in-depth probe of “Eagle Hills and Sunčani Hvar and Sunčani Hvar Nekretnine” merger
On 11 July 2024 the Croatian Competition Agency opened an in-depth investigation to assess whether the proposed merger of Eagle Hills and Sunčani Hvar and Sunčani Hvar Nekretnine is in line with competition rules.
The Croatian Competition Agency (CCA) decided to open a compatibility assessment proceeding in Phase II regarding the implementation of concentration between the undertakings Eagle Hills and Sunčani Hvar and Sunčani Hvar Nekretnine after it received a complete notification of the concentration on 11 June 2024 and published a request for information aimed at all interested parties with regard to the implementation of the concentration in question that could produce anticompetitive effects in the in the hospitality sector market including accommodation and catering in hotels and the accommodation and catering on camping sites in the territory of Split-Dalmatia County.
One undertaking replied to the CCA’s request for information and submitted its observations.
Based on the supplied evidence, other available data and findings that had been communicated to the CCA, the implementation of the concentration at issue could produce significant anticompetitive effects the relevant market.
Given this, it is necessary to conduct an in-depth economic and legal analysis in the specific case to potentially define the relevant market geographically in a narrower area, as well as in terms of hotel accommodation market segmentation based on the quality of the service, to assess the effects on competition. The assessment should therefore include the structure of the relevant market, the choice of supply and demand in the market, alternative sources of supply for customers, the effect of concentration on other undertakings, distribution channels, and ultimately, on end consumers.
Taking everything into account, the CCA decided to initiate the compatibility assessment proceeding in Phase II which marks the mandatory three-month-period within the meaning of Article 22 paragraph 1, in which it will take its final decision on the compatibility of the merger between Eagle Hills and Sunčani Hvar and Sunčani Hvar Nekretnine with competition rules.