FDJ’s Acquisition of Kindred Sparks Regulatory Concerns Over Brand Separation

Concerns have been expressed by the Competition Authority over FDJ’s purchase of Kindred, specifically the possible dangers of advertising and cross-selling Kindred’s goods to FDJ’s monopoly clients. The main worry about these tactics is that they can increase the risks for players.

FDJ has reaffirmed its commitment to upholding strict boundaries between its monopoly and commercial trademarks in response to these worries. Their player databases and websites should be kept apart as part of this. As a result, users will have to make separate accounts for Kindred and FDJ brands, like Unibet. Additionally, FDJ has promised that following the acquisition, Kindred’s betting and gaming goods will not bear its name or emblem.

FDJ made similar pledges during its bid to acquire ZEturf’s French operations, which included the ZEBet brand and ZEtote technology for horse racing. The goal was to ensure that commercial and monopoly operations remained separate.

Broader Regulatory Issues in France

The separation of monopoly and commercial activities has long been a contentious issue in France. Both FDJ and Pari-Mutuel Urbain (PMU) faced accusations of using their monopoly positions to unfairly compete with private operators.

FDJ is under scrutiny for not yet separating its land-based monopoly database from its online database. This issue was highlighted after a complaint from land-based casino operators to then-Prime Minister Yvan Attal. FDJ has committed to making this separation by January of this year.

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Additionally, FDJ faces a European Commission investigation into a €380 million payment related to its 25-year lottery and retail sports betting monopolies, with concerns about possible illegal state aid. This investigation follows two complaints filed in 2021, and a final ruling is pending.

PMU also faced legal issues related to combining its online and in-person liquidity. After a lawsuit from ZEturf and Betclic Everest Group, PMU was fined €900,000 by the Competition Authority in 2020 for failing to adhere to a promised split, which was initially committed to in 2013.

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