The Competition Authority has recently been investigating the proposed acquisition by Storytel AB of 70% of Forlagsins shares, as the merging parties legally notified the authority of the merger.
During its investigation, the Competition Authority gathered information and views from the merging parties, as well as from other interested parties in the relevant markets. The Authority received submissions from competitors and authors, who, among other things, expressed concerns about the merger.
As part of the investigation, the Competition Authority issued a statement of objections to the merging parties on 27 November. A statement of objections sets out the Authority's preliminary assessment of the merger, where it considers that intervention may be necessary. At the same time, the merging parties are given the fullest opportunity to exercise their right of reply and to present further observations. This was based in particular on the authority's initial assessment that the merger might distort competition in the publication of audiobooks as well as printed books. The merging parties responded to the initial assessment, and the authority has recently been processing their submitted views.
Today, the Competition Authority received a letter from the merger parties stating that the merger notification is withdrawn. It will therefore not be necessary for the Competition Authority to take a formal position on the merger. The case is therefore considered closed.
The Competition Authority will subsequently consider whether there is a reason to collect further information about the investigation.
Background information:
Storytel is a corporate group that specialises in the publishing of audiobooks, as well as operating a streaming service that provides subscribers with access to educational and entertainment content in audiobook and e-book format. Storytel's operations in Iceland are carried out primarily through its subsidiary, Storytel Iceland ehf., and consist mainly of the sale of subscriptions to the Storytel streaming service and the distribution of Icelandic audiobooks and e-books under distribution agreements with book publishers. The publishing house is an Icelandic publishing company. The company publishes books under the imprints JPV útgáfu, Máls og menningar, Vöku-Helgafells, Ókeibóka and Iðunn, and sells them to resellers. The publishing house also operates one bookshop in addition to an online store.
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