EUROPEAN COMMISSION DIRECTORATE-GENERAL FOR COMPETITION

OPINION

of the ADVISORY COMMITTEE on MERGERS

at its meeting on 24 May 2023 – 10:00-12:00

concerning a draft decision

RAPPORTEUR: BELGIUM

Operation

1. The Advisory Committee (9 Member States) agrees with the Commission that

the notified operation constitutes a concentration within the meaning of

Article 3(1)(b) of the Council Regulation No 139/2004 (the "Merger Regulation").

Union Dimension

2. The Advisory Committee (9 Member States) agrees with the Commission that

the notified operation has a Union dimension pursuant to Article 1(2) of the

Merger Regulation.

Product Market

3. The Advisory Committee (9 Member States) agrees with the Commission’s

definitions of the relevant product markets as stated in the draft decision for the

purpose of assessing the present operation, in particular:

a.a. The market for the acquisition of French-language primary publishing

rights for general literature and youth literature;

b.b. The market for the acquisition of French-language secondary publishing

rights for general literature;

c.c. The markets for the marketing of books for third party editors and its

relevant segmentations and the market for the distribution of books for

third party editors;

d.d. The markets for the sale of books to retailers and its relevant

segmentations;

e.e. The market for press celebrities’ magazines.

Geographic Market

4. The Advisory Committee (9 Member States) agrees with the Commission’s

definitions of the relevant geographic markets as stated in the draft decision, in

particular:

a.a. The market for the acquisition of French-language primary publishing

rights is worldwide in scope;

b.b. The market for the acquisition of French-language secondary publishing

rights is worldwide in scope;

c.c. The geographic markets for the marketing and distribution of books for

third party editors correspond to an area covering the French-speaking

region of the European Union, including France, Belgium and

Luxembourg;

d.d. The geographic markets for the sale of books to retailers correspond to

an area covering the French-speaking region of the European Union,

including France, Belgium and Luxembourg (except school books which

are national in scope);

e.e. Market for celebrities’ magazines is national in scope.

Competitive Assessment

Horizontal non-coordinated effects

5. The Advisory Committee (9 Member States) agrees with the Commission's

assessment on horizontal non-coordinated effects, namely that the Transaction

will significantly impede effective competition in:

a.a. The markets for the acquisition of French-language primary publishing

rights worldwide;

b.b. The market for the acquisition of French-language secondary publishing

rights worldwide;

c.c. The markets for the marketing of books for third party editors and its

relevant segmentations and the market for the distribution of books for

third party editors in the French-speaking region of the European Union,

including France, Belgium and Luxembourg;

d.d. The markets for the sale of general literature books, pocket books,

practical books, youth literature, school books, after school books,

dictionaries to retailers in the French-speaking region of the European

Union, including France, Belgium and Luxembourg;

e.e. The market for press celebrities’ magazines in France.

Commitments

6. The Advisory Committee (9 Member States) agrees with the Commission that

the publishing Commitments do eliminate the significant impediment to effective

competition in (i) the markets for acquisition of French-language primary and

secondary publishing rights worldwide, (ii) the markets of marketing and

distribution of books for third party editors in the French-speaking region of the

European Union, including France, Belgium and Luxembourg and, (iii) the

markets of sale of books to retailers in the French-speaking region of the

European Union, including France, Belgium and Luxembourg.

7. The Advisory Committee (9 Member States) agrees with the Commission that

the press Commitments do eliminate the significant impediment to effective

competition in the market for celebrities’ magazines in France.

Compatibility with the internal market

8. The Advisory Committee (9 Member States) agrees with the Commission's view

that the notified concentration should be declared compatible with the internal

market and the functioning of the EEA Agreement, in accordance with

Articles 2(2) and Article 8(2) of the Merger Regulation and Article 57 of the EEA

Agreement.