The Norwegian Competition Authority is considering intervening in the acquisition of Schibsted – E24

The Norwegian Competition Authority notes in a report that both Schibsted and Nettbil offer services within the mediation of the buying and selling of used cars through web-based platforms.

Finn, owned by Schibsted, offers advertising services to, among others, individuals who want to sell a used car.

Nettbil has an online auction solution for used cars that are sold from individuals to car dealers.

– Strong growth

“The Authority believes that the acquisition could weaken competition in the used car online distribution market and offer consumers a poorer offer,” the report states.

– The Norwegian used car online distribution market has few players, with Finn being by far the largest player in Norway. Nettbil is a newer player on the market that has seen strong growth in recent years. The Competition Authority is of the opinion that the acquisition removes the growing competitive pressure that Nettbil is putting on Finn, says department director Gjermund Nese.

– Unique concept

Schibsted announced late last year that it will buy 67 percent and become the majority owner of the newly created company.

– Schibsted is interested in investing in new concepts where we see growth potential, especially in our national Nordic market. Nettbil offers a rather unique concept that, in a new way, gives consumers the opportunity to sell their used car quickly and conveniently, said Christian Printzell Halvorsen, executive vice president responsible for Nordic markets at Schibsted.

The sellers were former investors Aller Media and Tjuvholmen Ventures. The rest of Nettbil will remain the property of the entrepreneurs themselves.

Nettbil was established in 2015 and sold 762 cars in 2018. As of December 2019, the number of cars sold during the year had increased to 3,000.

Fear fewer competitors

The Authority believes that the used car online distribution market will become even more concentrated with this acquisition.

– We fear that individuals who want to sell their car in an online market have fewer competitors to choose from. Reduced competition in the market could lead to a poorer supply to consumers, for example through higher prices, reduced quality or weakened innovation, says project manager Therese Halvorsen.

The Norwegian Competition Authority emphasizes that the current notification of a possible intervention is not a final decision.

The companies will now comment on the Authority’s assessments, before the Authority makes a final decision on the case. This will happen in about a month.

E24 is owned by VG, which is owned by Schibsted. Some E24 journalists own Schibsted shares through the group’s share savings program.