The European Commission has cleared under the EU Merger Regulation the proposed acquisition of World Duty Free Limited (WDF), a UK-based airport shop operator, by the Italian-based travel service provider Autogrill S.p.A.. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

Autogrill is a worldwide provider of food, beverage and retail services to travellers. In the travel retail business, it operates through its fully-owned subsidiaries Alpha Airport Group plc and Aldeasa S.A.. Alpha operates shops at a number of airports in the UK, Italy and other non-EU countries as well as the Eurotunnel terminals in the UK, while Aldeasa operates airport shops in Spain, Portugal and outside the EU.

WDF is a wholly-owned subsidiary of BAA Limited, the owner of seven airports in the UK, in which WDF holds concessions for the operation of airport shops.

The Commission's investigation showed that the merged entity, although it would become the leading player in airport travel retail, would continue to face a number of important competitive constraints, both in bidding for retail concessions at airports and in the operation of airport shops. There are several strong international players that actively participate in tenders for airport retail concessions as well as numerous smaller local and regional airport retailers. In addition, unlike Autogrill, WDF has not been an active bidder in tenders for airport retail concessions.

Finally, the Commission's investigation confirmed that switching costs for airport operators were low, whilst the entry of numerous high-street stores and brands in various airports across the EEA illustrates that the airport retailing market is competitive.