Ekspress Grupp to Challenge Lithuania's Decision on Lrytas Deal

Ekspress Grupp's Intent to Challenge Competitive Decision

Ekspress Grupp has made a significant announcement regarding its challenge against the recent ruling by the Lithuanian Competition Council. This ruling denied Ekspress Grupp the clearance necessary for acquiring the news portal Lrytas and mandated steps to revert the market conditions to their previous state. This decision has stirred considerable reaction from the management of Ekspress Grupp, demonstrating their commitment to pursuing legal avenues.

The Competition Council's Findings

On a certain date, the Lithuanian Competition Council revealed its conclusions regarding the acquisition. The Council determined that the concentration created by Ekspress Grupp's purchase of UAB Lrytas posed a serious risk of creating a dominant position in the market or significantly limiting competition within the realm of national news offerings on various portals in Lithuania.

Mandated Market Restorations

In response to their findings, the Competition Council outlined a six-month timeline wherein Ekspress Grupp must implement measures to restore previous market conditions. This timeline has been a catalyst for Ekspress Grupp's decision to contest the ruling. The management firmly believes in the competitive landscape of Lithuania's digital news market and is prepared to defend its position legally.

Management's Stance on Market Competition

Mari-Liis Rüütsalu, the Chairman of the Management Board at Ekspress Grupp, expressed strong dissent against the Competition Council's conclusions. Rüütsalu remarks that the digital news sector in Lithuania continues to exhibit robust competition. Various entities, including state-funded outlets, diverse media conglomerates, and highly specialized news portals contribute to a dynamic marketplace where consumer choices flourish. Readers actively engage with different sources, frequently utilizing technology for easy navigation across platforms.

Lrytas's Role and Significance in the Group

While Lrytas holds a place within Ekspress Grupp, accounting for approximately 5% of the overall turnover and 2% of the group’s EBITDA, Rüütsalu emphasizes its size relative to other operational facets of the Group. This perspective underlines the notion that the acquisition will not hinder competition within the market and stresses the strategic approach Ekspress Grupp takes in diversifying its media portfolio.

The Acquisition Journey of UAB Lrytas

Ekspress Grupp acquired UAB Lrytas by the close of the previous year. Following this acquisition, the Competition Council initiated an inquiry into the matter, which began a few months later and culminated in a preliminary decision in December of the subsequent year. This investigation scrutinized the implications of the acquisition, setting the stage for Ekspress Grupp's current actions.

Future Steps and Legalities

In May, a merger control notification was filed by Ekspress Grupp as part of the compliance process, indicating the company's initiative to engage with regulatory requirements proactively. The ongoing challenge ahead highlights Ekspress Grupp’s readiness to counter any regulatory hurdles that may impede its objectives within the competitive media landscape.

About AS Ekspress Grupp

AS Ekspress Grupp stands out as the leading media entity in the Baltic region. Dedicated to digital content creation, newspaper publishing, magazines, and book production, the Group's wide array of offerings reinforces its market presence. The company also manages an electronic ticket sales system, which operates in both Estonia and Latvia. With a rich history that dates back to 1989, Ekspress Grupp employs nearly 1100 dedicated professionals who drive its diverse ventures.

Frequently Asked Questions

What is the basis of Ekspress Grupp's dispute?

Ekspress Grupp disputes the Lithuanian Competition Council's decision to block their acquisition of Lrytas, believing the conclusion about market dominance is inaccurate.

How significant is Lrytas to Ekspress Grupp?

Lrytas constitutes about 5% of Ekspress Grupp's total turnover and 2% of its EBITDA, indicating its role as a smaller, yet important part of the company's media portfolio.

What actions is Ekspress Grupp taking against the ruling?

Ekspress Grupp plans to challenge the Competition Council's ruling in court, aiming to overturn the decision that restricts its market operations.

How does the digital news market appear in Lithuania?

The digital news market in Lithuania is characterized by strong competition, with multiple players including state media and specialized portals, allowing consumers diverse options.

When did Ekspress Grupp acquire Lrytas?

Ekspress Grupp completed its acquisition of UAB Lrytas by the end of the previous year, marking a significant expansion in its digital media offerings.

About The Author

Hi there, As a writer and financial specialist, Henry Turner is passionate about guiding people through the complex world of finance. Having worked in finance for many years, I am an expert at simplifying difficult financial ideas into understandable, useful insights for my blog and articles. My goal is to arm you with the confidence and information you need to make wise financial choices.

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