EP ENERGY TRADING Infringed Competition Act by Early Implementation of Merger With Gazela Energy
The Office for the Protection of Competition (the Office) imposed a fine of CZK 18,840,000 on the undertaking EP ENERGY TRADING. for concluding a concentration between undertakings prior to the notification and initiation of the administrative proceeding on the approval of the concentration and prior to the entry into force of the decision approving the concentration.
The decision has already come into force as the undertaking EP ENERGY TRADING admitted the misconduct in the course of the settlement procedure and did not file an appeal.
The offence was committed by the undertaking EP ENERGY TRADING at the turn of 2022 and 2023 in relation to the acquisition of the undertaking Gazela Energy from the undertaking VORAGO HOLDING LIMITED. At the end of 2022, i.e., at the time prior to the notification of the concentration in question, sensitive information was exchanged between the merging entities and, following an agreement between EP ENERGY TRADING and VORAGO HOLDING LIMITED, the articles of association of the undertaking Gazela Energy were amended, and moreover, representatives of EP ENERGY TRADING were appointed to corporate bodies of Gazela Energy. In connection with the concentration in question, the undertaking EP ENERGY TRADING also obliged the undertaking VORAGO HOLDING LIMITED to terminate all electricity and/or natural gas supply contracts that Gazela Energy had concluded with its suppliers by 31 December 2022.
These steps led to the early implementation of the concentration, i.e. at the time when the notification for the approval of the merger had not yet been submitted and the final decision of the Office for the Protection of Competition approving the concentration had not yet been adopted.
When calculating the fine, the Office considered mitigating circumstances, in particular the fact that the undertaking itself brought the infringement to the Office´s attention, stating that the merger notification had not been timely submitted due to an administrative error, and at the same time the undertaking sought to remedy the situation. In addition, the undertaking EP ENERGY TRADING cooperated with the Office in the course of the administrative proceedings beyond its legal obligation. The undertaking also fulfilled all the conditions for the application of the settlement procedure, due to which the final amount of the fine was reduced by 20 % to CZK 18,840,000.
Press Unit of the Office
24/069 – S0484/2023
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