The Swedish Competition Authority Initiates Special Investigation into Postnord’s Acquisition of 21grams

The Authority Needs More Time to Investigate Postnord’s Planned Acquisition of 21grams.

Postnord Strålfors’ planned purchase of 21grams was signed in June, sparking debate among critics who argue that, if approved, the acquisition could grant the state-owned postal giant further dominance and a monopolistic position in the postal and print market.

Extended Investigation Period

On November 26, Postnord submitted its notification of the merger to the Swedish Competition Authority (Konkurrensverket). Initially, the authority had 25 days to determine whether the deal would lead to unfair competition in the market.

The Competition Authority has now announced an extension of the investigation period by three months, initiating a so-called “special investigation.”

“To make a final decision on the concentration, additional investigation and analysis of its potential effects are required,” the authority stated in a press release.

Engaging More Industry Stakeholders

In its decision, the authority noted that it had consulted a large number of stakeholders from various parts of the industry during the initial investigation, including customers, providers of customer communication solutions, printing companies, and postal distributors.

“Descriptions of market conditions from several stakeholders contrast with those in the notification, for example, regarding the interchangeability of physical and digital services.”

Concerns About the Deal

Several stakeholders have expressed concerns to the authority about the merger between Postnord Strålfors and 21grams. These fears include:

• Dominance in the Industry : Postnord potentially gaining a dominant position in printing services and customer communication.
• Sensitive Data Misuse : Risks of misuse of business-sensitive information about competitors contained in 21grams’ software.
• Software Accessibility : Potential changes to 21grams’ software that could favor Postnord or result in the software no longer being available to other stakeholders.

The Swedish Competition Authority must decide by April 8, 2025 , whether to approve the deal or block it.