On Tuesday 26 September, the European Commission decided to open an in-depth investigation into the planned merger between Essilor and Luxottica, both of which are leaders in the optical industry.
The Commission has concerns that the operation will create a competition distortion on the optical market, as Essilor is the largest supplier of ophthalmic lenses, both in Europe and the world, and Luxottica is the largest supplier of eyewear, both in Europe and the world, with a portfolio that includes the brands Ray-Ban and Oakley.
The institution has concerns that the merged entity will use Luxottica's brands to put pressure on opticians to purchase Essilor lenses through practices such as bundling or tying, which could eliminate the competitors of the current world leader in ophthalmic lenses. Due to Essilor's significance in this market segment, the Commission also has concerns that Luxottica's competitors in the eyewear segment could be wiped out of the market. The Commission also justified its in-depth investigation by the fact that both companies currently face considerable emerging competition on their respective markets, which the merger operation could remove.
The institution has until 12 February 2018 to return its decision. (Original version in French by Lucas Tripoteau)