Monday, 18 April 2022

Decision 775/2022

Clearance of the notified concentration under ref. no 8003/1.10.2021, pursuant to Article 6 of Law 3959/2011, concerning the acquisition by the company under the name “DELIVERY HERO SE” of sole control over the companies under the names "ALPHA DISTRIBUTIONS S.A.", "INKAT S.A.", "DELIVERY Single Member P.C." and "E-TABLE Single Member P.C."

Decision 775/2022

File (PDF)  Decision 775/2022
Date of Issuance of Decision April 18th,  2022
Issue Number of Government Gazette 5432/ Β΄/14.09.2023
Relevant Market

The relevant markets in this transaction can be defined as, primarily, the market for online intermediation services for the sale of supermarket products, groceries and products of local delicatessen stores, prepared meals as well as the online intermediation market for restaurant reservations through an online platform.

Subject of the Decision

Clearance of the notified concentration under ref. no 8003/1.10.2021, pursuant to Article 6 of Law 3959/2011, concerning the acquisition by the company under the name “DELIVERY HERO SE” of sole control over the companies under the names "ALPHA DISTRIBUTIONS S.A.", "INKAT S.A.", "DELIVERY Single Member P.C." and "E-TABLE Single Member P.C.", following the Statement of Objections under ref. no 2606/17.03.2022 by the Commissioner-Rapporteur I. Stefatos.

Legal Framework

Articles 6-8,  L. 3959/2011.

Operative part of the Decision

The Hellenic Competition Commission (HCC), in plenary, unanimously approves, pursuant to Article 8 (6, 8) of Law 3959/2011, the notified concentration pursuant to Article 6 (1-3) of Law 3959/2011, concerning the acquisition by the company under the name “DELIVERY HERO SE” of sole control over the companies under the names "ALPHA DISTRIBUTIONS S.A.", "INKAT S.A.", "DELIVERY Single Member P.C." and "E-TABLE Single Member P.C.", subject to subject to terms and conditions (remedies), on the basis of commitments undertaken by the acquirer vis-à-vis the HCC, under Article 8 (4, 8) of Law 3959/2011, as in force. The HCC threatens DELIVERY HERO SE with a fine of ten thousand euros (€10,000) for each day of non-compliance with this Decision, by virtue of Article 8 (8) of Law 3959/2011.

Company(ies) concerned
  1. “DELIVERY HERO SE”
  2. "ALPHA DISTRIBUTIONS S.A."
  3. "INKAT S.A."
  4. "DELIVERY Single Member P.C."
  5.  E-TABLE Single Member P.C."
Summary of Decision

According to the Decision, following the transaction, the merged entity’s e-food and delivery.gr platforms will hold a high combined market share on the market for online intermediation for the sale of supermarket products, which is not expected to change substantially in the future due to its exclusive cooperation with a large supermarket chain. However, in view of the bargaining power of other supermarkets, the online sales of which are primarily channeled through their own websites instead of online platforms, it is estimated, in conclusion, that the merged entity will not be capable of bringing about any substantial change in the competitive market conditions, compared with the pre-merger conditions and, therefore, it is not likely to significantly affect competition in the market concerned.

However, it is considered that the combination of the new entity’s activities in the online intermediation market for restaurant reservation services through the e-table platform and in the online intermediation market for prepared meals ordering through the e-food online platform would give rise to conglomerate non-coordinated effects. In particular, it is considered that the merged entity will have both the ability and the incentive to pursue a tying or bundling policy, providing the online intermediation services for the ordering of prepared meals, in which it already holds a strong market position, along with the online restaurant-reservation services, thereby reducing the ability or incentive of its competitors to compete effectively in the online restaurant-reservation service market and, possibly, also strengthening its power in the above markets through the use of e-table users’ data.

To address the HCC’s concerns, Delivery Hero has offeredthe following commitments: Delivery Hero (in particular, through e-food) unreservedly undertakes the obligation not to tie the online intermediation services for prepared-meals ordering with the online restaurant-reservation services (through e-table) where such services are provided to business users/restaurants, in the Greek territory. The latter will be free to purchase each of these services separately. The company also unreservedly undertakes, in the Greek territory, the obligation not to provide special discounts to business users and/or not to charge reduced commissions/fees when these business users buy online intermediation services for prepared-meals ordering (especially from e-food) as well as online restaurant-reservation services (either through the e-food platform, in case the e-table service is integrated therein, or directly through the e-table). addition, Delivery Hero commits itself not to use end-user data collected from the e-food platform to implement personalised (customised) promotion strategies in the context of the e-table services and vice versa, unless end-users have previously given their consent to receive personalised advertising and marketing communications, in accordance with the applicable data protection rules.

The implementation of the commitments will be monitored by a specially appointed Trustee. The duration of the commitments undertaken by Delivery Hero is two (2) years from the transaction completion date. Upon expiry of the 2nd commitment year, the HCC may decide to extend the duration of the commitments by one (1) year based on quantitative data submitted to the Trustee. The above company reserves the right to request from the HCC to review the remedies imposed if a significant and permanent change in market conditions occurs.

Judicial Means -
Decisions by the Court of Appeal of Athens (Administrative Division) -

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