by Foo Yun Chee
BRUSSELS (Reuters) – The European competition authority opened an investigation on Tuesday into the acquisition of the Lagardère group by Vivendi to determine whether acquisition rules have been broken, in which case a heavy fine could be imposed on the French conglomerate.
In recent years, the European regulator has imposed heavy fines to deter violations of antitrust regulations.
Vivendi did not immediately respond to a request for comment.
Brussels had signaled last month that an investigation could be opened after press reports emerged that Vivendi may have completed the deal without waiting for a green light from the European regulator.
The investigation will seek to determine whether Vivendi failed to comply with the notification requirements and conditions set by the European Commission to approve the acquisition of Lagardère last month.
In a statement, EU Competition Commissioner Margrethe Vestager said Brussels takes “any violation of these procedures very seriously”. “At this stage, the Commission has gathered enough elements to open a formal investigation to determine whether Vivendi has complied with our procedures,” she added.
A possible fine could reach up to 10% of Vivendi’s worldwide turnover.
(Report Foo Yun Chee; Jean Terzian, edited by Nicolas Delame)
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