Division (2)

The Commission considers that the commitments offered by De Beers are sufficient to address the identified competition concerns. In particular, following a transitional period from 2006 to 2008 during which De Beers’ purchases will be reduced and which is necessary to build a competitive distribution system for the quantities of diamonds previously sold by De Beers, De Beers undertakes to refrain from all purchases of rough diamonds from ALROSA as of 2009. By freeing up the portion of diamonds from ALROSA previously resold by De Beers and, upon lapse of the transitional period, by discontinuing the entirety of De Beers’ purchase relationship with ALROSA, the commitments address the concern of reducing access to a viable source of alternative supply of rough diamonds and hindering the second biggest competitor from fully competing with De Beers.