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EEX, Nasdaq deal triggers EU concerns about bundled products, price hikes
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EEX, Nasdaq deal triggers EU concerns about bundled products, price hikes
May 22, 2024 9:53 AM

BRUSSELS, May 22 (Reuters) - EU antitrust regulators are

seeking feedback on whether the European Energy Exchange (EEX)

might expand its market power by bundling products when it buys

Nasdaq's European power trading and clearing business, a person

with direct knowledge of the matter said on Wednesday.

The European Commission, which is examining the deal, sent a

questionnaire to the companies' rivals and customers this month,

asking for replies early this week, the person said. EEX is

Europe's leading electricity and natural gas exchange, serving

800 participants.

"One dedicated section in the questionnaire is about

conglomerate effects," the person said, referring to the impact

on competition from the merger of two companies in closely

related but not competing markets.

"The Commission would like to understand whether the merged

entity could use its strong position in one market to increase

its market position in markets of similar products," the person

said.

The questionnaire asked if the merged entity might do this

by offering products only as part of bundles for a fixed fee or

making the sale of one product conditional on the sale of

another related one, the person said.

The Commission, which last year said the merged company

could have an incentive to raise trading fees or worsen

conditions for market participants, declined to comment.

The questionnaire also asked about the impact of the deal on

prices and the barriers for rivals to enter the market, the

person said.

EEX and Nasdaq in their response to the Commission last year

said the deal posed no significant threat to competition in

Denmark, Finland, Sweden, Norway or any other EU country, that

it would not eliminate competition between the two companies,

and that market reaction had been positive.

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