The National Markets and Competition Commission (CNMC) has authorized with commitments and conditions the purchase of 18 Intersport assets by Decathlon to thus facilitate the entry of competitors.
The acquisition takes place within the framework of a bankruptcy proceeding and the CNMC's authorization is not final, so it will be communicated to the Minister of Economy, Trade and Enterprise, Carlos Cuerpo, so that he can decide whether to submit it to the Council of Ministers, which may assess the operation according to general interest criteria other than competition defense.
As indicated in a statement, the CNMC considers the commitments made by Decathlon to be insufficient and has imposed several conditions on the sports goods chain to facilitate the entry of competitors.
For example, immediate communication with landlords and competitors to facilitate the entry of interested third parties or an extension of 2 more months to promote the entry of a third party in one of the assets subject to divestment.
The CNMC understands that in the absence of commitments or conditions, the operation would imply that Decathlon would control 15 assets in Tenerife, most of them in attractive areas, such as shopping centers, which could hinder the access of other operators to the market, especially due to the lack of available space on the island.
As a consequence, there could be a reduction in the supply and variety of sports products, especially third-party brands, a decrease in the quality and specialization of service, a loss of geographic coverage, or a reduction in innovation incentives in the establishments, it adds.
Decathlon proposed to operate one store and promote the entry of competitors in 13 stores in Tenerife for three, four, and five months and to eliminate current and future exclusivity clauses in shopping centers on the island of Tenerife.
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