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Dying in Tirajana: Mapfre's legal monopoly for 100.000 euros
Tunte Cemetery Tunte Cemetery

Dying in Tirajana: Mapfre's legal monopoly for 100.000 euros

Yurena Vega Tuesday, August 22, 2023

The retail market for comprehensive funeral services in the south of Gran Canaria encompasses the set of funeral services (transport, funeral home, cemetery, cremation and sale of products such as flowers) provided by funeral companies to individuals. In the south of Gran Canaria since 2021 there has been a legal monopoly and the previous corporation ate the matter with chips. It is NOT so much the business of the deceased tirajaneros (regulated) but the overload of income at free prices from tourists (those drowned in pools or beaches, those who go hiking or die violent deaths, among others). These are the income that is channeled to the funeral homes of Maspalomas, Tunte, Aldea Blanca, Castillo del Romeral, Fataga El Pajar and Cercados de Espino in addition to the crematorium of Maspalomas.

The CNMC has gotten involved in the business of dying in San Bartolomé de Tirajana and imposed a fine that it calls "serious" of 100.000 euros on Funespaña, a company belonging to the Mapfre insurance group, dedicated to the comprehensive provision of funeral services for not notifying the CNMC. that bought the entirety of Funeraria Alianza Canaria as it had a crazy market share. It is assumed that he has paid and the monopoly continues. Failure to comply with the duty of prior notification in this type of acquisition, known in competition jargon as 'gun jumping', constituted for CNMC a serious infringement of the Competition Defense Law. 

In the event that the acquired company does not exceed 10 million euros, it is mandatory to notify the operation to the CNMC when the individual or joint market share of the companies participating in the operation is equal to or greater than 50% in any of the the affected markets, at the national level or in a defined geographic market within it. On November 19, 2020, the CNMC ex officio required Funespaña to notify the purchase of Alianza Canaria, considering that, in accordance with the precedents on the definition of the affected markets, the operation exceeded the thresholds defined in the Defense Law. of the Competition. 

The file concludes that this circumstance is met, at least, in the retail market for funeral services in San Bartolomé de Tirajana, where Funeraria Canaria had a share of between 50-60%. The CNMC considers that Funespaña was negligent in carrying out a market analysis that deviated from the relevant precedents, a fact that unjustifiably led it to not notify the concentration. Consequently, the CNMC has imposed on Funespaña, S.A. a fine of 100.000 euros, in accordance with the provisions of article 63.1 b) of the Competition Law.

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