Vj-132/1997/17

HUNGAROTABAK TOBACCO TRADING CO / TOBACCOLAND HUNGÁRIA TRADING LTD

Hungarotabak and Tobaccoland made a concentration agreement and applied for an authorisation from the Hungarian Competition Office. Under the agreement Tobaccoland merged into Hungarotabak to minimise costs and amalgamate the selling networks to make possible the unification of the selling conditions to consumers on the territory of the country.

The Office of Economic Competition may not refuse the authorisation of a concentration under the Competition Act if it does not create or strengthen a dominant position, does not impede the formation, development or continuation of effective competition on the relevant market. Taking into consideration of these factors the Competition Council cleared the concentration as in its view the merged undertakings will not have dominant position either on the purchasing market nor at the selling to retailers, they could not operate independently from the retailers or its competitors. In the case of purchasing the new undertaking`s competitor is MADOF and in the case of selling its strong competitors are the individual members of MADOF.

July 30, 1998. Budapest

dr. Bodócsi András sk. előadó
Fógel Jánosné dr. sk.
dr. Kállai Mária sk.
Szabó Györgyi