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Relevant Market
After considering the activities of the parties to the transaction, the
Commission stated that the relevant product market is the chocolate
confectionary market.
As to the geographical market, the Commission determined that it
covers the “European Union”. The Commission, in light of the customer
preferences in the UK and Ireland mentioned above, stressed that this
geographical market should be divided into “UK and Ireland market” and
“European Union with the exception of UK and Ireland market”.
Commission’s Investigation
The Commission found that Cadbury has a significant market share
in the UK and Ireland. However, in the same geographical market, Kraft
has a very low market share. Thus, the Commission concluded that the
operation would not cause strengthening of a dominant position in the
UK and Irish market and thus would not raise any competition concerns.
However, the Commission determined that the operation may cause the
creation of a dominant position in the chocolate confectionery market in
Poland and Romania where the total market share of both parties is very
high. After investigating, the Commission concluded that the divestiture
commitments mentioned would remedy the competition concerns and
ensure the maintenance of effective competition
6
.
Remedy Proposed by the Parties to the Operation
In order to remedy the competition concerns in the relevant markets,
the parties proposed to make the following commitments:
•
Divestment of Cadbury’s confectionery business in Poland -
marketed under the Wedel brand and
•
Divestment of Cadbury’s domestic chocolate confectionery
business in Romania.
6 In accordance with the Commission Notice, the commitments have to eliminate competition
concerns entirely and have to be comprehensive and effective from all points of view. Please
see. Commission notice on remedies acceptable under Council Regulation (EC) No. 139/2004
and under Commission Regulation (EC) No. 802/2004 numbered 2008/C-267/01 and dated
October 22, 2008 (hereinafter referred to as Notice”),