FAS RUSSIA REFUSED AVITO TO PURCHASE CIAN
The merger of companies may lead to limited competition in the market
The FAS Russia has received an application of Avito Holding LLC for the acquisition of rights that allow determining the conditions for the implementation of entrepreneurial activities of Irieltor LLC and H1.ru LLC. The companies are part of a group of persons that manages specialized online catalogs of announcements in the real estate sector CIAN, H1.ru LLC, MLCN.ru. EMLC.ru.
The Antimonopoly Service conducted an analysis of the state of competition in the market. According to the results of the study, the FAS Russia found that the merger of Avito and CIAN will lead the formation of a dominant entity (companies will occupy more than 50% of the market) and may lead to limited competition in the market.
This situation, according to the agency, increases the probability of higher prices for the services of Avito and CIAN bulletin boards for both individuals and professional participants (real estate agencies, developers).
All the positive effects declared by the parties from the transaction (for example, a reduction in the number of scams with online ads) could be achieved without its conclusion. Thus, the actions of the services to maintain security do not require their unification into one group of persons, the FAS Russia believes.
The Antimonopoly Service has decided to refuse to satisfy the application for the transaction.