Decision 776/2022 |
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File (PDF) | Decision 787/2022 | |
Date of Issuance of Decision | 08/07/2022 | |
Issue Number of Government Gazette | 5835/ Β΄/05.10.2023 | |
Relevant Market |
1) The relevant product market was defined as the gaming market via terrestrial means, specifically including: a) the market of special-knowledge sports gaming, conducted via terrestrial means b) the market for traditional lotteries via terrestrial means, c) the market for gaming machines (OPAP Video Lottery Terminals (VLTs) and casino slot machines, d) the market for State lotteries and e) the market for totalizator horse-race betting via terrestrial means. 2) The relevant market for bill payment services via physical networks. 3) The relevant market for the provision of money remittance services via a physical network, in which agents act as intermediaries. 4) The relevant market for the provision of sales / distribution services for third-party products, specifically pre-paid mobile and fixed phone cards, and Internet data through a physical network. |
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Subject of the Decision |
Decision on the complaints lodged against the company under the name “Organization of Football Prognostics S.A.” (OPAP) for alleged infringements of Articles 1 and 2 of Law 3959/2011 and 102 and 102 TFEU. |
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Legal Framework |
Article 29A of L. 3959/2011 and 101 and 102 TFEU. |
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Operative part of the Decision |
The Hellenic Competition Commission (HCC), in plenary and by open vote, decided as follows: Α.1 Finds, by majority, that the company under the name “Organization of Football Prognostics S.A.” infringed, according to the grounds of the Decision, Articles 2 of Law 3959/2011 and 102 TFEU. Α.2 Orders the “Organization of Football Prognostics S.A.”to: Α.2.1 Cease the infringement found of Articles 2 of Law 3959/2011 and 102 TFEU. Α.2.2 Refrain in future from the infringement found of Articles 2 of Law 3959/2011 and 102 TFEU. Α.3 Threatens the “Organization of Football Prognostics S.A.” with a fine of ten thousand euros (€10,000) for each day of non-compliance with the above Decision, from the date of publication thereof, i.e. for each day of repetition of the infringement found of Articles 2 of Law 3959/2011 and 102 TFEU, if such an infringement is established by a new HCC Decision Β.1 Finds, by majority, that the “Organization of Football Prognostics S.A.” infringed, according to the grounds of the Decision, Articles 1 of Law 3959/2011 and 101 TFEU. Β.2 Orders the “Organization of Football Prognostics S.A.” to: Β.2.1 Cease the infringement found of Articles 1 of Law 3959/2011 and 101 TFEU. Β.2.2 Refrain in future from the infringement found of Articles 1 of Law 3959/2011 and 101 TFEU. Β.3 Threatens the “Organization of Football Prognostics S.A.” with a fine of ten thousand euros (€10,000) for each day of non-compliance with the above Decision, from the date of publication thereof, i.e. for each day of repetition of the infringement found of Articles 1 of Law 3959/2011 and 101 TFEU, if such an infringement is established by a new HCC Decision. C. Imposes, by majority, a fine totaling twenty-four million five hundred sixty-two thousand two hundred forty-nine euros and five cents (EUR 24,562,249.05) on the company under the name “Organization of Football Prognostics S.A.” for the infringements found of Articles 1 of Law 3959/2011, 101 TFEU and 2 of Law 3959/2011, 102 TFEU. |
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Company/ies concerned |
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Summary of Decision |
The HCC Plenary decided, by majority, that the economic power of the OPAP group and, hence, of OPAP S.A. in the gaming market, via territorial means, is particularly significant throughout the period under consideration (2017 – 2021) resulting in the company’s position of economic strength held in the relevant market which objectively enables it to impede effective competition, behaving to a significant extent independently of its competitors, customers and, ultimately, consumers (dominant position). Based on the overall evidence, the HCC was also found, by majority, that OPAP S.A. engaged, inter alia, in non-compete practices in all the relevant markets concerned as well as in tying practices with respect to services concerning (a) bill payment and (b) mediation for telecom firms’ product sale and marketing since the entry into force of the 2017 Agency Agreement, throughout the period under consideration (2017 – 2021), for which the Plenary decided, by majority, that they are in breach of both Articles 1 and 2 of Law 3959/2011 and Articles 101 and 102 TFEU. The contractual commitment regarding the ancillary markets (not the gaming markets) agreed between OPAP and the agents under the above terms (tying practice & non-compete obligation) constitutes, according to the HCC’s majority Decision, a form of permanent strategic commitment of the agents, increasing the risk of and producing anticompetitive foreclosure with respect to ancillary markets. In this case, the HCC Plenary decided, by majority, that the hyper-dominant company, OPAP, enjoying a statutory monopoly in the market for the provision of gaming services via terrestrial means (this is a special condition that characterizes the market, which should also be taken into account , as it is a dominant position granted by the state and not acquired through a commercial policy), in the form of tying contractually imposed by OPAP (applied in conjunction with the non-compete obligation) not only protects its already very strong position in terms of the main gambling market, but what is mainly of interest in this case is that it affects, in a way not consistent with the so-called competition on the merits, competition in ancillary services, namely those concerning bill payment and intermediation for the distribution and sale of telecom products, for which no statutory monopoly has been granted, eliminating not only actual but also potential competition, by imposing the contractual terms at issue. According to the HCC majority Decision, the practices of the company complained of mainly affect the level of agents, who act as intermediate consumers of the services offered by OPAP in the relevant markets concerned, but also as partners of OPAP in the context of the ecosystem it has set up. Furthermore, due to OPAP's dominant (monopoly) position in the territorial gaming market in which OPAP's agents also operate as intermediate users (distributors) and OPAP's power-leveraging practices (with tied sales being an example of such a leverage), these particular practices may also have at least potential effects on end consumers as well, by limiting the possibility of OPAP's competitors in the affected ancillary markets to compete effectively with it, giving OPAP S.A. a significant competitive advantage in those markets, which may affect the entry of new market players, thus affecting end-consumer choice of new or improved products or services, service quality and innovation. Furthermore, as OPAP's dominant position in the territorial gaming market will be maintained, at least in the coming years, it cannot be excluded that this undertaking will have other opportunities to resort to leveraged or tying practices in relation to other adjacent markets /ancillary services. |
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Judicial Means | - | |
Decisions by the Court of Appeal of Athens (Administrative Division) | - |