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Rabat – Veolia Environnement, a French utility company specializing in water and waste management, is facing a substantial fine of $10 million (100 million dirhams) from the Competition Council in a settlement procedure related to “unauthorized economic concentration.”
The Competition Council is a body of the Moroccan Competition Authority, in charge of maintaining transparency and fairness in the economic relations, through the regulation of economic markets.
The news comes after the Council accused Veolia of breaking competition laws by controlling water and electricity services in major cities.
In late September 2021, the Council conditioned its approval for the Veolia-Suez merger on the divestment of certain activities and assets of Suez, including Lydec, to a consortium of investors. The consortium is composed of Meridiam, Global Infrastructure Partners, Groupe Caisse des Depots et Consignations, and its subsidiary CNP Assurance.
However, in September 2023, the market watchdog accused Veolia of not having fulfilled its commitments, describing Veoila’s actions as “unauthorized economic concentration.”
The Council noted that the merger between Veolia and Suez has violated competition laws in Morocco due to the fact that Veolia now controls the water and electricity distribution market in a number of major urban areas. These are mainly Casablanca, but also Rabat, and Tangier through utilities companies Lydec, Redal, and Amendis.
Veolia now has one month to find a buyer for Lydec to address. The deadline could be extended by one month.
The Council noted that the merger between Veolia and Suez violated competition laws in Morocco due to the fact that Veolia now controls the water and electricity distribution market in a number of major urban areas. These are mainly Casablanca, but also Rabat, and Tangier through the water companies of Lydec, Redal, and Amendis.
Morocco’s Competition Council issued over 31 antitrust fines with a total value of MAD 72 billion ($7.2 billion) in 2022 alone.
According to the Council’s annual report for 2022, the fines were issued over failures to properly report on economic concentration operations.
Read Also: Morocco’s Competition Council Imposed $7.2 Billion in Antitrust Fines in 2022
