On Thursday 1 March, the European Commission approved the merger between Essilor and Luxottica, both companies operating in the optical sector, following an in-depth investigation that was launched on 26 September of last year (see EUROPE 11871).
At the time, the institution had concerns that the future transaction would create a competition distortion on the optical market, given the size of the companies involved, as Essilor is the world and European leading supplier of spectacle lenses, and Luxottica is the largest supplier in Europe and the world of eyewear articles, owning the brands Ray-Ban and Oakley, amongst others. The Commission was worried that once the merger was in place, Essilor's rival lens providers would be driven out of the market due to grouped sales or related sales with Luxottica's branded frames, given their position on the market.
However, the Commission noted that Luxottica's brands represented just 20% of the market share for frames in Europe and that many optical outlets in Europe did not sell these products.
It also considered that both entities were not powerful enough to remove rival lens suppliers from the market, even if they did decide on a strategy of grouped or related sales.
Finally, the institution takes the view that Luxottica's competitors on the eyewear market would not be removed from the market either, due to Essilor's limited muscle.
The Commission therefore concluded that the merger was compatible with EU law. (Original version in French by Lucas Tripoteau)