Office of Fair Trading To Examine GAME/Gamestation Deal
Competition Commission has power to nix the deal
As expected when we recently announced the news that high street specialist retailer GAME is set to acquire hardcore gamer’s favourite chain Gamestation, the Office of Fair Trading (OFT) is set to investigate the £74 million deal to ensure that it is not anti-competitive.
The deal is set to bring the total number of shops operated by GAME to 627 in the UK and 1,047 worldwide. If the OFT investigation concludes that the deal could (possibly) breach UK competition laws, then the matter will be referred on to the Competition Commission, which ultimately has the power to nix the deal.
An OFT statement relating the the GAME/Gamestation deal said, “The Office of Fair Trading is considering whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002.
The statement continues, in legalese, “Should it be found to be a relevant merger situation, the OFT will further consider whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services that warrants reference to the Competition Commission for investigation and report.”
A GAME spokesperson responded: “As expected we have notified the acquisition of Gamestation to the OFT for normal regulatory review. This review will take about two months and we will be co-operating fully with the OFT process.”
SPOnG will keep you updated on all the latest news relating to GAME’s seemingly unstoppable march to own high street gaming retail in the UK.
The deal is set to bring the total number of shops operated by GAME to 627 in the UK and 1,047 worldwide. If the OFT investigation concludes that the deal could (possibly) breach UK competition laws, then the matter will be referred on to the Competition Commission, which ultimately has the power to nix the deal.
An OFT statement relating the the GAME/Gamestation deal said, “The Office of Fair Trading is considering whether arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002.
The statement continues, in legalese, “Should it be found to be a relevant merger situation, the OFT will further consider whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the UK for goods or services that warrants reference to the Competition Commission for investigation and report.”
A GAME spokesperson responded: “As expected we have notified the acquisition of Gamestation to the OFT for normal regulatory review. This review will take about two months and we will be co-operating fully with the OFT process.”
SPOnG will keep you updated on all the latest news relating to GAME’s seemingly unstoppable march to own high street gaming retail in the UK.
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Comments
ajmetz 4 Jun 2007 12:59
1/4
Always read Spong.com first. =P
I just read this on the gamegroup website, and fired off an email to Pat,
but then come here, and find your GAME Spokesperson quote already tells me what I was mainly curious about - when we'll know if it'll be referred or not, and looks like somewhen in the next two months.
I wonder what UK competition would be like if GameStop got GameStation though, and added it to it's circa 2000 US stores. =P
^_^
I just read this on the gamegroup website, and fired off an email to Pat,
but then come here, and find your GAME Spokesperson quote already tells me what I was mainly curious about - when we'll know if it'll be referred or not, and looks like somewhen in the next two months.
I wonder what UK competition would be like if GameStop got GameStation though, and added it to it's circa 2000 US stores. =P
^_^
Ethan 4 Jun 2007 22:25
2/4
The thing is it's not legally anti-competitive because most of the games retail market is in places like Amazon and Woolworths, but they'll have an complete hold over the preowned games market, and it's just plain bad for me because independant developers will find it even harder to get into British retail.
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Gs Employee 18 Jan 2008 21:04
3/4
The deal has gone through the game group now own gs
OptimusP 20 Jan 2008 22:43
4/4
European law at its finest!