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“We have opened an in-depth investigation to assess whether the proposed transaction which will combine the activities of LSEG and Refinitiv would negatively affect competition in these markets. It is key for a well functioning financial market to ensure that market participants continue to have access to financial market infrastructure and financial data products on competitive terms,” said Commission Executive Vice President and Competition Commissioner Margrethe Vestager.
The Commission was concerned that the merger would create a “very large combined market share in the electronic trading of European government bonds,” thus resulting in horizontal market consolidation.
Other concerns related to vertical consolidation. The Commission fears the deal would generate a “combined entity with significant market power both upstream (trading) and downstream (clearing)” in the trading of over-the-counter interest rates derivatives.