# C_2006223EN.01001401.xml

| 16.9.2006 | EN | Official Journal of the European Union | C 223/14 |
| --------- | -- | -------------------------------------- | -------- |

---

Opinion of the Advisory Committee on concentrations given at its 135th meeting on 6 December 2005 concerning a draft decision relating to case COMP/M.3696 — E.ON/MOL

(2006/C 223/08)

(Text with EEA relevance)

| 1. | The Advisory Committee agrees with the Commission that the notified operation constitutes a concentration within the meaning of Article 1(3) and 3(1)(b) of the Merger Regulation and that it has a Community dimension as defined by the Merger Regulation. |
| -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |

| 2. | The Advisory Committee agrees with the Commission that for the purpose of assessing the present operation, the relevant product markets are
in the gas sector:
a)
Transmission of gas b)
Distribution of gas c)
Storage of gas d)
Supply of gas to traders e)
Supply of gas to Regional Distribution Companies (‘RDCs’) f)
Supply of gas to large power plants g)
Supply of gas to large industrial customers (with an hourly consumption exceeding 500 m3/hour) h)
Supply of gas to small commercial and industrial customers (with an hourly consumption below 500 m3/hour) i)
Supply of gas to residential customers in the electricity sector:
j)
Transmission of electricity k)
Distribution of electricity l)
Provision of balancing power m)
Wholesale supply of electricity to traders n)
Wholesale supply of electricity to the public utility wholesaler o)
Wholesale supply of electricity to RDCs p)
Retail supply of electricity to medium and large commercial and industrial customers q)
Retail supply of electricity to small commercial and industrial customers r)
Retail supply of electricity to residential customers | a) | Transmission of gas | b) | Distribution of gas | c) | Storage of gas | d) | Supply of gas to traders | e) | Supply of gas to Regional Distribution Companies (‘RDCs’) | f) | Supply of gas to large power plants | g) | Supply of gas to large industrial customers (with an hourly consumption exceeding 500 m3/hour) | h) | Supply of gas to small commercial and industrial customers (with an hourly consumption below 500 m3/hour) | i) | Supply of gas to residential customers | j) | Transmission of electricity | k) | Distribution of electricity | l) | Provision of balancing power | m) | Wholesale supply of electricity to traders | n) | Wholesale supply of electricity to the public utility wholesaler | o) | Wholesale supply of electricity to RDCs | p) | Retail supply of electricity to medium and large commercial and industrial customers | q) | Retail supply of electricity to small commercial and industrial customers | r) | Retail supply of electricity to residential customers |
| -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ------------------- | -- | ------------------- | -- | -------------- | -- | ------------------------ | -- | --------------------------------------------------------- | -- | ----------------------------------- | -- | ---------------------------------------------------------------------------------------------- | -- | --------------------------------------------------------------------------------------------------------- | -- | -------------------------------------- | -- | --------------------------- | -- | --------------------------- | -- | ---------------------------- | -- | ------------------------------------------ | -- | ---------------------------------------------------------------- | -- | --------------------------------------- | -- | ------------------------------------------------------------------------------------ | -- | ------------------------------------------------------------------------- | -- | ----------------------------------------------------- |
| a) | Transmission of gas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| b) | Distribution of gas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| c) | Storage of gas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| d) | Supply of gas to traders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| e) | Supply of gas to Regional Distribution Companies (‘RDCs’) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| f) | Supply of gas to large power plants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| g) | Supply of gas to large industrial customers (with an hourly consumption exceeding 500 m3/hour) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| h) | Supply of gas to small commercial and industrial customers (with an hourly consumption below 500 m3/hour) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| i) | Supply of gas to residential customers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| j) | Transmission of electricity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| k) | Distribution of electricity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| l) | Provision of balancing power | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| m) | Wholesale supply of electricity to traders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| n) | Wholesale supply of electricity to the public utility wholesaler | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| o) | Wholesale supply of electricity to RDCs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| p) | Retail supply of electricity to medium and large commercial and industrial customers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| q) | Retail supply of electricity to small commercial and industrial customers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| r) | Retail supply of electricity to residential customers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 3. | The Advisory Committee agrees with the Commission that for the purpose of assessing the present operation, the relevant geographic markets are national for the following markets
in the gas sector:
a)
Transmission of gas b)
Storage of gas c)
Supply of gas to traders d)
Supply of gas to RDCs e)
Supply of gas to large power plants f)
Supply of gas to large industrial customers (with an hourly consumption exceeding 500 m3/hour) g)
Supply of gas to small commercial and industrial customers (with an hourly consumption below 500 m3/hour) h)
Supply of gas to residential customers (after July 2007 when residential customers become eligible) in the electricity sector:
i)
Transmission of electricity j)
Provision of balancing power k)
Wholesale supply of electricity to traders l)
Wholesale supply of electricity to the public utility wholesaler m)
Wholesale supply of electricity to RDCs n)
Retail supply of electricity to medium and large commercial and industrial customers o)
Retail supply of electricity to small commercial and industrial customers p)
Retail supply of electricity to residential customers (after July 2007 when residential customers become eligible) | a) | Transmission of gas | b) | Storage of gas | c) | Supply of gas to traders | d) | Supply of gas to RDCs | e) | Supply of gas to large power plants | f) | Supply of gas to large industrial customers (with an hourly consumption exceeding 500 m3/hour) | g) | Supply of gas to small commercial and industrial customers (with an hourly consumption below 500 m3/hour) | h) | Supply of gas to residential customers (after July 2007 when residential customers become eligible) | i) | Transmission of electricity | j) | Provision of balancing power | k) | Wholesale supply of electricity to traders | l) | Wholesale supply of electricity to the public utility wholesaler | m) | Wholesale supply of electricity to RDCs | n) | Retail supply of electricity to medium and large commercial and industrial customers | o) | Retail supply of electricity to small commercial and industrial customers | p) | Retail supply of electricity to residential customers (after July 2007 when residential customers become eligible) |
| -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -- | ------------------- | -- | -------------- | -- | ------------------------ | -- | --------------------- | -- | ----------------------------------- | -- | ---------------------------------------------------------------------------------------------- | -- | --------------------------------------------------------------------------------------------------------- | -- | --------------------------------------------------------------------------------------------------- | -- | --------------------------- | -- | ---------------------------- | -- | ------------------------------------------ | -- | ---------------------------------------------------------------- | -- | --------------------------------------- | -- | ------------------------------------------------------------------------------------ | -- | ------------------------------------------------------------------------- | -- | ------------------------------------------------------------------------------------------------------------------ |
| a) | Transmission of gas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| b) | Storage of gas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| c) | Supply of gas to traders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| d) | Supply of gas to RDCs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| e) | Supply of gas to large power plants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| f) | Supply of gas to large industrial customers (with an hourly consumption exceeding 500 m3/hour) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| g) | Supply of gas to small commercial and industrial customers (with an hourly consumption below 500 m3/hour) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| h) | Supply of gas to residential customers (after July 2007 when residential customers become eligible) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| i) | Transmission of electricity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| j) | Provision of balancing power | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| k) | Wholesale supply of electricity to traders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| l) | Wholesale supply of electricity to the public utility wholesaler | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| m) | Wholesale supply of electricity to RDCs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| n) | Retail supply of electricity to medium and large commercial and industrial customers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| o) | Retail supply of electricity to small commercial and industrial customers | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| p) | Retail supply of electricity to residential customers (after July 2007 when residential customers become eligible) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| 4. | The Advisory Committee agrees with the Commission that for the purpose of assessing the present operation, the relevant geographic markets are at present sub-national for the following markets
in the gas sector:
a)
Distribution of gas b)
Supply of gas to residential customers until July 2007 in the electricity sector:
c)
Distribution of electricity d)
Retail supply of electricity to residential customers until July 2007 | a) | Distribution of gas | b) | Supply of gas to residential customers until July 2007 | c) | Distribution of electricity | d) | Retail supply of electricity to residential customers until July 2007 |
| -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ------------------- | -- | ------------------------------------------------------ | -- | --------------------------- | -- | --------------------------------------------------------------------- |
| a) | Distribution of gas | | | | | | | | |
| b) | Supply of gas to residential customers until July 2007 | | | | | | | | |
| c) | Distribution of electricity | | | | | | | | |
| d) | Retail supply of electricity to residential customers until July 2007 | | | | | | | | |

| 5. | The Advisory Committee agrees with the Commission that the proposed transaction will create a fully vertically integrated entity along the gas and electricity supply chains by combining MOL's almost exclusive control over gas resources and storage and E.ON's strong market positions in the retail supply of gas through its ownership of regional distribution companies in both gas and electricity, and E.ON's activities in electricity generation/wholesale. |
| -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |

| 6. | The Advisory Committee agrees with the Commission that therefore after the transaction, the new entity will have both the ability and incentive to foreclose access to gas for its competitors in the downstream gas and electricity markets. |
| -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |

| 7. | The Advisory Committee agrees with the Commission that the merged entity has a dominant position in the following markets in the gas sector:
a)
Supply of gas to traders in Hungary b)
Supply of gas to RDCs in Hungary c)
Supply of gas to large power plants in Hungary d)
Storage of gas in Hungary | a) | Supply of gas to traders in Hungary | b) | Supply of gas to RDCs in Hungary | c) | Supply of gas to large power plants in Hungary | d) | Storage of gas in Hungary |
| -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ----------------------------------- | -- | -------------------------------- | -- | ---------------------------------------------- | -- | ------------------------- |
| a) | Supply of gas to traders in Hungary | | | | | | | | |
| b) | Supply of gas to RDCs in Hungary | | | | | | | | |
| c) | Supply of gas to large power plants in Hungary | | | | | | | | |
| d) | Storage of gas in Hungary | | | | | | | | |

| 8. | The Advisory Committee agrees with the Commission that the proposed concentration is likely to result in a significant impediment to effective competition in the common market or in a substantial part of it and the EEA for the following markets
in the gas sector:
a)
Supply of gas to large industrial customers in Hungary through the creation of the dominant position b)
Supply of gas to small commercial and industrial customers in Hungary c)
Supply of gas to residential customers in Hungary (in each of the RDCs' areas separately before July 2007) in the electricity sector:
d)
Wholesale supply of electricity to traders in Hungary e)
Retail supply of electricity to medium and large commercial and industrial customers in Hungary f)
Retail supply of electricity to small commercial and industrial customers in Hungary g)
Retail supply of electricity to residential customers in Hungary (in each of the RDCs' areas separately before July 2007) | a) | Supply of gas to large industrial customers in Hungary through the creation of the dominant position | b) | Supply of gas to small commercial and industrial customers in Hungary | c) | Supply of gas to residential customers in Hungary (in each of the RDCs' areas separately before July 2007) | d) | Wholesale supply of electricity to traders in Hungary | e) | Retail supply of electricity to medium and large commercial and industrial customers in Hungary | f) | Retail supply of electricity to small commercial and industrial customers in Hungary | g) | Retail supply of electricity to residential customers in Hungary (in each of the RDCs' areas separately before July 2007) |
| -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -- | ---------------------------------------------------------------------------------------------------- | -- | --------------------------------------------------------------------- | -- | ---------------------------------------------------------------------------------------------------------- | -- | ----------------------------------------------------- | -- | ----------------------------------------------------------------------------------------------- | -- | ------------------------------------------------------------------------------------ | -- | ------------------------------------------------------------------------------------------------------------------------- |
| a) | Supply of gas to large industrial customers in Hungary through the creation of the dominant position | | | | | | | | | | | | | | |
| b) | Supply of gas to small commercial and industrial customers in Hungary | | | | | | | | | | | | | | |
| c) | Supply of gas to residential customers in Hungary (in each of the RDCs' areas separately before July 2007) | | | | | | | | | | | | | | |
| d) | Wholesale supply of electricity to traders in Hungary | | | | | | | | | | | | | | |
| e) | Retail supply of electricity to medium and large commercial and industrial customers in Hungary | | | | | | | | | | | | | | |
| f) | Retail supply of electricity to small commercial and industrial customers in Hungary | | | | | | | | | | | | | | |
| g) | Retail supply of electricity to residential customers in Hungary (in each of the RDCs' areas separately before July 2007) | | | | | | | | | | | | | | |

| 9. | The Advisory Committee agrees with the Commission that the maintenance of cross-shareholdings between MOL and the new entity will allow the new entity to reinforce its foreclosure strategy through its position in the gas storage market and MOL's position in the transmission market. |
| -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |

| 10. | The Advisory Committee agrees with the Commission that the undertakings are sufficient to remove the significant impediment to competition in the following markets
in the gas sector:
a)
Supply of gas to large industrial customers in Hungary b)
Supply of gas to small commercial and industrial customers in Hungary c)
Supply of gas to residential customers in the Hungarian RDCs' areas (in Hungary after 2007) d)
Storage of gas in Hungary in the electricity sector:
e)
Wholesale supply of electricity to traders in Hungary f)
Retail supply of electricity to medium and large commercial and industrial customers in Hungary g)
Retail supply of electricity to small commercial and industrial customers in Hungary h)
Retail supply of electricity to residential customers in the Hungarian RDCs' areas (in Hungary after July 2007) | a) | Supply of gas to large industrial customers in Hungary | b) | Supply of gas to small commercial and industrial customers in Hungary | c) | Supply of gas to residential customers in the Hungarian RDCs' areas (in Hungary after 2007) | d) | Storage of gas in Hungary | e) | Wholesale supply of electricity to traders in Hungary | f) | Retail supply of electricity to medium and large commercial and industrial customers in Hungary | g) | Retail supply of electricity to small commercial and industrial customers in Hungary | h) | Retail supply of electricity to residential customers in the Hungarian RDCs' areas (in Hungary after July 2007) |
| --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -- | ------------------------------------------------------ | -- | --------------------------------------------------------------------- | -- | ------------------------------------------------------------------------------------------- | -- | ------------------------- | -- | ----------------------------------------------------- | -- | ----------------------------------------------------------------------------------------------- | -- | ------------------------------------------------------------------------------------ | -- | --------------------------------------------------------------------------------------------------------------- |
| a) | Supply of gas to large industrial customers in Hungary | | | | | | | | | | | | | | | | |
| b) | Supply of gas to small commercial and industrial customers in Hungary | | | | | | | | | | | | | | | | |
| c) | Supply of gas to residential customers in the Hungarian RDCs' areas (in Hungary after 2007) | | | | | | | | | | | | | | | | |
| d) | Storage of gas in Hungary | | | | | | | | | | | | | | | | |
| e) | Wholesale supply of electricity to traders in Hungary | | | | | | | | | | | | | | | | |
| f) | Retail supply of electricity to medium and large commercial and industrial customers in Hungary | | | | | | | | | | | | | | | | |
| g) | Retail supply of electricity to small commercial and industrial customers in Hungary | | | | | | | | | | | | | | | | |
| h) | Retail supply of electricity to residential customers in the Hungarian RDCs' areas (in Hungary after July 2007) | | | | | | | | | | | | | | | | |

| 11. | The Advisory Committee agrees with the Commission that, subject to full compliance with the undertakings offered by the parties, and considered all undertakings together, the proposed concentration does not significantly impede effective competition in the common market or in a substantial part of it, in particular as a result of the creation or strengthening of a dominant position, within the meaning of Article 2(2) of the Merger Regulation and that the proposed concentration is therefore to be declared compatible with Article 2(2) and 8(2) of the Merger Regulation and Article 57 of the EEA Agreement. |
| --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |

| 12. | The Advisory Committee asks the Commission to take into account all the other points raised during the discussion. |
| --- | ------------------------------------------------------------------------------------------------------------------ |

---