The Competition and Market Authority (CMA) are investigating the potential merger between Ladbrokes Plc and certain business in the Gala Coral Group Limited.
While the merger has not happened yet, the CMA have provisionally found that merger of the two companies could lead to competition concerns.
About the companies
Ladbrokes is a betting and gaming business that operates in the UK and in other countries like Belgium, Spain and Australia. It offers betting and gaming via its high street shops, online website, telephone and mobile apps.
Gala Coral Group Limited is a holding company of a gaming and betting group in the UK as well as growing in Italy. It offers gaming and betting services on a variety of its websites such as Coral.co.uk and Galacasino.com. You can also use mobile devices and a telephone system in order to bet and game as well.
What could happen if the merger took place?
The CMA found that if the two companies were to merge, there may be a substantial lessening of competition due to loss of competition at a local level. However, it was also found that the merging may not cause a substantial lessening of competition on a national level – in relation to things like online gambling products and the supply of media rights for greyhound’s tracks.
It also found that the merged companies may not be able to use its relationship with Playtech, the world’s largest publicly listed online gambling software and services supplier (source), in order to disadvantage the competition.
What would happen if the merger did breach competition law?
If the merging of Ladbrokes and Gala Coral Group was found to result in a dominant market position, they would not automatically be breaching competition law. However, if it was found that they were abusing a dominant position by imposing unfair terms, discriminatory pricing, refusing to provide facilities, or only supplying if a company bought more from them, than they would perhaps be in breach of their dominant market position.
If they were found to have breached competition law, they could have faced repercussions. This could have included being fined up to 10% of their gross global turn over and having an action brought against them by third parties who have suffered damages due to the anti-competitive behaviour.
Can we help?
As this case is being investigated before it has actually happened, it’s like we will need to wait to see what happens before any further action is reviewed. However if you have been the victim of a different competition breach then we can help.
Whether it be as an individual or as a class claim, we can help and urge you to contact us if you believe you have suffered a loss and are entitled to damages.