Commission Decision of 14 March 2006 declaring a concentration compatible with the common market and the functioning of the EEA Agreement (Case COMP/M.3868 — DONG/Elsam/Energi E2) (notified under document number C(2006) 793) (Only the English text is authentic) (Text with EEA relevance) (2007/353/EC) (revoked) in Scotland

EU Decision 2007/353 · Adopted 14 March 2006 · Extends to United Kingdom

Commission Decision

of 14 March 2006

declaring a concentration compatible with the common market and the functioning of the EEA Agreement

(Case COMP/M.3868 — DONG/Elsam/Energi E2)

(notified under document number C(2006) 793)

(Only the English text is authentic)

(Text with EEA relevance)

(2007/353/EC) (revoked)

F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

On 14 March 2006 the Commission adopted a Decision in a merger case under Council Regulation (EC) No 139/2004 of 20 January 2004 on the control of concentrations between undertakings (the EC Merger Regulation), and in particular Article 8(2) of that Regulation. A non-confidential version of the full Decision can be found in the authentic language of the case on the website of the Directorate-General for Competition, at the following address: http://ec.europa.eu/comm/competition/index_en.html

Annotations to the whole text

Textual amendments

F1: Decision revoked (31.12.2020) by The Competition (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/93), reg. 1(1), Sch. 3 para. 2 (as amended by S.I. 2020/1343, reg. 34(3)); 2020 c. 1, Sch. 5 para. 1(1)

ISUMMARY Repealed
(1)Division (1) Repealed
(2)Division (2) Repealed
(3)The Decision concludes that the transaction leads to a significant impediment of effective competition, in particular through the strengthening of dominant positions on the following markets Repealed
(4)Division (4) Repealed
(5)Division (5) Repealed
IIEXPLANATORY MEMORANDUM Repealed
1THE PARTIES Repealed
(6)Division (6) Repealed
(7)Division (7) Repealed
(8)Division (8) Repealed
2THE OPERATION AND THE CONCENTRATION Repealed
(9)Division (9) Repealed
3LEGAL AND REGULATORY FRAMEWORK Repealed
(10)Division (10) Repealed
(11)Division (11) Repealed
4RELEVANT MARKETS Repealed
ANATURAL GAS Repealed
1Relevant product markets Repealed
(12)Division (12) Repealed
Market for gas storage and gas flexibility Repealed
(13)Division (13) Repealed
(14)Division (14) Repealed
(15)According to the Commission, these different flexibility tools can be divided into five groups, namely: Repealed
(16)Division (16) Repealed
Market for gas wholesale supplies Repealed
(17)As regards gas wholesale supplies for Denmark, the Decision concludes that there exists a market for wholesale supplies of gas for Denmark, which comprises all sales: Repealed
(18)Division (18) Repealed
(19)Division (19) Repealed
Market for supply of natural gas to central CHP plants Repealed
(20)Division (20) Repealed
(21)Division (21) Repealed
Market(s) for supply of gas to decentral CHPs and to large industrial customers Repealed
(22)Division (22) Repealed
(23)Division (23) Repealed
(24)Division (24) Repealed
Market(s) for supplies of gas to households and small businesses Repealed
(25)Division (25) Repealed
(26)Division (26) Repealed
(27)Division (27) Repealed
2Relevant geographic markets Repealed
Market for gas storage and gas flexibility Repealed
(28)Division (28) Repealed
(29)However, the results of the market investigation showed that the geographic market for storage (or flexibility) is, irrespective of the scope of the relevant product market, limited to Denmark. Main reasons for this conclusion are: Repealed
(30)Division (30) Repealed
Market for gas wholesale supplies Repealed
(31)Division (31) Repealed
(32)The market investigation provides strong indications that the market for wholesale supplies is limited to Denmark. The Decision concludes that Sweden is not part of the same geographical market as Denmark; it forms a separate market which is Swedish or Danish-Swedish in scope since the wholesale supplies in Sweden does not exercise a strong competitive constraint on wholesale supplies in Denmark. Similarly, it is concluded that Germany, the Netherlands and the United Kingdom are not part of the same geographic market as Denmark. The reasons are: Repealed
(33)Division (33) Repealed
Market for the supply of natural gas to central CHPs Repealed
(34)Division (34) Repealed
Market(s) for supply of gas to decentralised CHPs and large industrial customers Repealed
(35)Division (35) Repealed
Market(s) for supplies of gas to households and small businesses Repealed
(36)Division (36) Repealed
3Conclusion on relevant markets in the natural gas sector Repealed
(37)The Decision considers that the following relevant markets exist: Repealed
BELECTRICITY Repealed
1Relevant product markets Repealed
Generation and wholesale of physical electricity; Ancillary services Repealed
(38)Division (38) Repealed
(39)Division (39) Repealed
(40)Division (40) Repealed
Financial derivatives of electricity Repealed
(41)Division (41) Repealed
Electricity retail Repealed
(42)Division (42) Repealed
2Relevant geographic markets Repealed
Wholesale of physical electricity Repealed
(43)Division (43) Repealed
(44)Division (44) Repealed
Ancillary services Repealed
(45)Division (45) Repealed
Financial derivatives of electricity Repealed
(46)Division (46) Repealed
Electricity retail Repealed
(47)Division (47) Repealed
3Conclusion on relevant markets in electricity Repealed
(48)The Decision therefore defines the following electricity markets: Repealed
COTHER MARKETS Repealed
(49)Division (49) Repealed
5COMPETITIVE ASSESSMENT Repealed
(50)Division (50) Repealed
ANATURAL GAS Repealed
1Market for gas storage and gas flexibility Repealed
(51)Division (51) Repealed
(52)Division (52) Repealed
(53)Division (53) Repealed
(54)Division (54) Repealed
(55)Division (55) Repealed
2Market for gas wholesale supplies Repealed
(56)Division (56) Repealed
(57)The Decision concludes that DONG is dominant on the Danish market for gas wholesale supplies, considering that the company’s market share was [80-90 %] * in 2004. The Commission analysed potential competitive constraints on DONG’s dominant position from the following five sources: Repealed
(58)Division (58) Repealed
(59)Division (59) Repealed
(60)Division (60) Repealed
(61)Division (61) Repealed
(62)Division (62) Repealed
(63)Division (63) Repealed
(64)Division (64) Repealed
(65)Division (65) Repealed
(66)Division (66) Repealed
3The market for the supply of natural gas to central CHPs Repealed
(67)Division (67) Repealed
(68)Division (68) Repealed
(69)Division (69) Repealed
4Market(s) for supplies to industrial customers and decentral CHPs Repealed
(70)Division (70) Repealed
(71)Division (71) Repealed
(72)Division (72) Repealed
(73)Division (73) Repealed
(74)Division (74) Repealed
(75)Division (75) Repealed
(76)Division (76) Repealed
(77)Division (77) Repealed
(78)Division (78) Repealed
(79)Division (79) Repealed
(80)Division (80) Repealed
5Market(s) for supplies of gas to households and small businesses Repealed
(81)Division (81) Repealed
(82)Division (82) Repealed
(83)Division (83) Repealed
(84)Division (84) Repealed
(85)Division (85) Repealed
(86)Division (86) Repealed
(87)Division (87) Repealed
(88)Division (88) Repealed
6Conclusion on the assessment of the natural gas markets prior to consideration of modifications to the notified concentration Repealed
(89)The Decision concludes that the transaction leads to a significant impediment of effective competition, in particular through the strengthening of dominant positions on the following product markets: Repealed
BELECTRICITY Repealed
(90)Division (90) Repealed
1Electricity wholesale Repealed
(91)Division (91) Repealed
(92)Division (92) Repealed
(93)Division (93) Repealed
(94)Division (94) Repealed
(95)Division (95) Repealed
(96)Division (96) Repealed
(97)Division (97) Repealed
2Ancillary services Repealed
(98)Division (98) Repealed
3Financial derivatives of electricity Repealed
(99)Division (99) Repealed
(100)Division (100) Repealed
4Retail supply of electricity to business customers Repealed
(101)Division (101) Repealed
5Retail supply of electricity to small standard load profile customers Repealed
(102)Division (102) Repealed
(103)Division (103) Repealed
(104)Division (104) Repealed
6Conclusion on competitive assessment for electricity markets Repealed
(105)Division (105) Repealed
6COMMITMENTS Repealed
ADESCRIPTION OF THE COMMITMENTS Repealed
1Storage divestiture Repealed
(106)Division (106) Repealed
2Gas Release Programme Repealed
(107)Division (107) Repealed
BASSESSMENT OF THE COMMITMENTS SUBMITTED Repealed
1Effect of the proposed commitments on the storage/flexibility market Repealed
(108)Division (108) Repealed
(109)Division (109) Repealed
(110)Division (110) Repealed
(111)Division (111) Repealed
(112)Division (112) Repealed
2Effect of the proposed commitments on the wholesale market for natural gas Repealed
(113)Division (113) Repealed
(114)Division (114) Repealed
(115)Division (115) Repealed
(116)Division (116) Repealed
(117)Division (117) Repealed
(118)Division (118) Repealed
(119)Division (119) Repealed
(120)Division (120) Repealed
3Effect of the proposed commitments on natural gas retail markets Repealed
Market(s) for supplies to industrial customers and decentral CHPs and Market(s) for supplies to small businesses and households Repealed
(i)The raising of entry barriers (vertical problems) Repealed
(121)Division (121) Repealed
(122)Division (122) Repealed
(123)Division (123) Repealed
(124)Division (124) Repealed
(125)Division (125) Repealed
(ii)Elimination of potential competition Repealed
(126)Division (126) Repealed
(127)Division (127) Repealed
(128)Division (128) Repealed
7CONCLUSION Repealed
(129)Division (129) Repealed
(130)Division (130) Repealed

Annotations to the whole text

Textual amendments

Contents