The European Commission has launched an in-depth investigation to assess the proposed concentration between Essilor and Luxottica in the light of the EU merger regulation. Reason: the Antitrust fears that the merger could reduce competition on the optical lenses market and intends to extend the investigations to the eyeglass frames market. According to EU law, Brussels has 90 days, i.e. until 12 February 2018, to take a decision on the matter.
In essence, the Commission has concerns that the new entity could use the strong brands held by Luxottica to persuade opticians to buy Essilor lenses, excluding other lens manufacturers from the market, through practices such as bundling or tied selling: Essilor is in fact the main supplier of ophthalmic lenses, while Luxottica is the main supplier of eyeglass frames.
