Consiliul Concurenţei ( The Romanian Competition Council) has fined Westgate Romania a total RON229,496 lei (nearly EUR50,000) because the operator didn’t wait until it obtained the approval before taking over the Stanleybet betting agency.
The council found out the violation while analyzing the transaction where Westgate took over the right to use the Stanleybet brands (Stanleysport.ro and Stanleybet.ro domains, as well as the Stanleybet brand) in Romania.
Westgate admitted that it had wrapped up the merger before the deal was fully approved by the country’s competition regulator. According to local Ziarul Financiar news website, the admission of wrongdoing by Westgate Romania reduced the fine.
According to current regulations, it is forbidden to act on a merger before notifying and obtaining the authorization from the Competition Council. Therefore, the buyer cannot make decisions about the acquired company, such as exercising the right to conclude contracts, selling the assets, restructuring the company, before the Competition Authority analyses the operation.
Westgate operates slot machines and video-lottery terminals on the local market. The company also took over the Stanleybet betting agency but had to wait to get the Competitiion Council’s approval for the transaction before starting to operate this new business. Stanleybet is one of Romania’s top betting brands.