A fine of MDL 353.000 for failing to notify a merger despite it being declared compatible with the market
* varianta in romana a acestui articol poate fi gasita aici
The Competition Council announced its decision after having examined the merger between the companies Narzan SA and Elit Fruct SRL: the control over Elit Fruct SRL was taken over by the owner of Narzan SA.
Following the respective decision, Narzan SA was fined MDL 353.145 for not notifying the Competition Council about the aforementioned transaction.
It should be mentioned that, following the investigation, the Competition Council has found that the merger does not pose any risks to competition in the market and declared it compatible with the market. Both companies were active in different markets: the first one was present on the market of the raw wood processing and the production of wooden packages, and the other was dealing with the fruit and vegetable wholesale trade.
According to the analysis carried out, the effects of this transaction on the respective markets throughout the territory of the Republic of Moldova were insignificant and there were no structural changes in the respective markets as a result.
So, the rather significant fine was applied simply for the fact that the transaction was not notified in advance.
According to art. 20 par. (1) of the Competition Law, it is forbidden to conduct a merger operation, until such merger is declared compatible with the market.
Under art. 22 par. (1) a merger shall be notified to the Competition Council before its being implemented, if:
– the combined aggregate turnover of all the undertakings concerned is more than MDL 25.000.000 and
– the aggregate turnover in Moldova of each of at least two of the undertakings concerned is more than MDL 10,000,000 lei in the previous year before the operation.
It is also worth mentioning that at the end of 2018, the same company within the same case was already fined MDL 71.750 for failing to cooperate with the Competition Council and for not providing the information requested by the Council.
