Elkjøp’s acquisition of Eplehuset needs further examination

The sale of Apple products constitutes large and important markets for Norwegian consumers. The Norwegian Competition Authority therefore needs to carry out a more in depth assessment of Elkjøp’s proposed acquisition of Eplehuset.

Today, the Norwegian Competition Authority has notified Elkjøp Nordic AS and Hovedhuset AS (Eplehuset) that the Authority needs to further examine the transaction. The notification means that the Authority considers it necessary to carry out a more detailed assessment of whether intervention against the acquisition may be warranted.

Elkjøp has notified the acquisition of all shares in Hovedhuset AS, the parent company of the Eplehuset group. In its further assessment, the Norwegian Competition Authority will, among other things, examine whether the acquisition could lead to a reduction of competition in the retail sale of Mac computers and iPads to private customers, as well as in the market for authorized service and repair of Apple products.

The parties are currently among the largest retailers of Mac and iPad products to private customers in Norway.. The Norwegian Competition Authority therefore needs to assess more closely the effects of the removal of competitive pressure between the parties, both at a national and local level. The Authority will also consider whether the acquisition could give rise to coordinated effects in the market for consumer electronics, either by increasing the likelihood of coordination or by making existing coordination easier, more stable or more effective.

In its further assessment, the Norwegian Competition Authority will also examine competition in the market for authorized service and repair of Apple products. In several geographic areas, Elkjøp and Eplehuset are currently the only Apple authorized operators with a local presence. The Authority will assess the effects of the removal of competitive pressure between the parties.

– There is a possibility that the acquisition could weaken competition in markets that are important to many consumers, both regarding the sale of Apple products and access to authorized service and repair. That is why we now consider it necessary to take a closer look at the transaction, says Johannes Hjartlie, Project Manager at the Norwegian Competition Authority.

The notification is not a final decision but means that the Norwegian Competition Authority will proceed with the case to carry out a detailed assessment of the acquisition.

– A 25 day notification means that we have grounds to investigate the acquisition further. In the period ahead, the Norwegian Competition Authority will carry out a thorough assessment of how the acquisition may affect competition. It is only after such an in depth assessment that the Authority will decide whether there are grounds for intervention, says Marita Mæland Skjæveland, Director of the Department for Construction, Industry and Energy.