COMPETITION COUNCIL REFUSES TO EXAMINE MERGER NOTIFICATION ON THE RENT OF PREMISES

Having determined that the intended agreement on the rent of commercial premises is not a merger, the Competition Council (the Council) refused to examine the merger notification.

A company informed the Council about intentions to rent commercial premises and open there a wholesale and retail shop of building materials, decoration and household goods as well as other goods of do-it-yourself type. The company also noted that they will rent both, premises and racks. Until the given moment these premises had been used by other company engaged in a similar activity.

Having evaluated the information provided by the company, the Council determined that the rent of the aforementioned commercial premises and racks is not considered to be a unit of an independent economic activity whereto a certain turnover in a relevant market is allocated. The acquired tenant rights cannot be evaluated as giving the company control over another company.

The Council draws attention to the fact that, despite everything, a merger may be implemented when one company gains the right to use all or part of the property of another company, for instance, concludes an agreement on the rent of a property which is considered to be a unit of an independent economic activity and, thus, gains control over such property. Nevertheless, each case should be evaluated individually in order to determine whether an agreement on the rent of property allows an undertaking to have a decisive influence on the activity of another undertaking.