The Danish Competition Council has approved JP/Politikens Hus’ acquisition of sole control over Dansk Avis Omdeling A/S and A/S Bladkompagniet subject to commitments
On 15 December 2021 the Danish Competition Council has approved JP/Politikens Hus A/S’ (“JP/Politiken”) acquisition of sole control over the newspaper distributors Dansk Avis Omdeling A/S (“DAO”) and A/S Bladkompagniet (“Bladkompagniet”). JP/Politiken has committed to sell newspaper distribution on fair, reasonable and non-discriminatory terms to DAO and Bladkompagniets costumers.
JP/Politiken is a Danish media company that publishes the newspapers Ekstra Bladet, Jyllands-Posten and Politiken. In addition, JP/Politiken runs publishing, printing and news services, and sells books.
DAO offers distribution of daily newspapers in Jutland and distribution of parcels throughout Denmark.
Bladkompagniet offers distribution of daily newspapers on Zealand and the surrounding islands and distribution of magazines and letters throughout Denmark.
Before the merger, JP/Politiken had joint control over DAO and Bladkompagniet together with Den Sydvestjydske Venstrepresse ApS and Berlingske Media A/S respectively. After the merger, JP/Politiken will become the majority shareholder, while Jysk Fynske Medier PS (partly owned by Den Sydvestjydske Venstrepresse ApS) and Berlingske Media A/S will become minority shareholders.
As part of the acquisition, Bladkompagniet will become a subsidiary of DAO. DAO thus becomes a nationwide distributor of daily newspapers and mail (including parcels, magazines and letters).
Based on an overall assessment the Danish Competition Council considered that the merger would lead to a significant impediment to effective competition. JP/Politiken becomes the owner of the only two daily newspaper distributors in parts of Jutland and on Zealand and the surrounding islands. This would give JP/Politiken the opportunity and incentive to raise prices or degrade conditions for competing newspaper publishers that need the distribution of newspapers in these areas.
To meet the concerns of the Danish Competition Council, JP/Politiken has submitted five commitments. Overall, the commitments ensure that DAO and Bladkompagniet sell newspaper distribution on fair, reasonable and non-discriminatory terms to their customers.