SNAI SERVIZI - SAN SIRO/TRENNO (Conclusion of the investigation)
PRESS RELEASE
The Italian Competition Authority has decided that, as a result of the commitments formally assumed by the parties, the acquisition of 67,9 % of Trenno's equity capital by Snai Servizi does not create a dominant position such as to reduce competition substantially and on a lasting basis in the market for the management and organization of horse races.
By acquiring Trenno, Snai Servizi enters into the market of horse track management. Indeed, Trenno manages both the San Siro gallop track and trotting track in Milan as well as the Montecatini Terme trotting track.
Snai Servizi carries out activities and services dealing with the collection of bets through 281 horse race betting agencies, which hold its capital stock and collect nearly 60% of total bets (2,650 billions lira [approximately 1,5 billion US $] out of total 4,620 billions collected in 1995 [approx. 3 billions US $]). Furthermore, Snai Servizi deals with the transmission of bets to Unire's National Temporary Totalizer System; it participates in Consortris in order to collect Tris bets and, finally, it manages, through Teleippica and the Crai consortium, the television signal of the horse races.
In view of the vertical integration arising from the merger, as it was initially pointed out by the Authority, the parties would have been present in all the stages that the management and organization of horse races go through: from the collection of bets at one end to the management of horse tracks at the other, and, as such, would have been able to modify the distribution of bets among the diverse horse tracks via the control over the transmission of the television signal.
Indeed, this situation would have led to the creation of a dominant position so as to reduce competition substantially and on a lasting basis in the market for the management and organization of horse races. It is to be noted, in fact, that nearly 25% (and, sometimes, over 30%) of the horse tracks' revenues depend on the volume of bets collected by the horse betting agencies.
However, during the investigation, Snai Servizi, in order to eliminate the possibility of reducing competition by a strategic usage of the television signal, undertook to divest of this activity in favour of a third party, whose independence and impartiality are proved.
As such, if and when a consortium of subjects who are delegated for the transmission of the television signal would be created, in compliance with Unire's decision no. 722 of May 13th, 1996, Snai Servizi has undertaken not to assume a position of exclusive control, either in fact or in law, in the above mentioned consortium.