ΚΥΠΡΙΑΚΗ ΔΗΜΟΚΡΑΤΙΑ Decision CPC: 74/2021 Case Number: 08.05.001.021.063 THE CONTROL OF CONCENTRATIONS BETWEEN ENTERPRISES LAW No. 83(Ι)/2014 Notification of concentration concerning the acquisition of the share capital of Chompi CC Networkings Ltd by ironSource Ltd Commission for the Protection of Competition: Mrs. Loukia Christodoulou Chairperson Mr. Andreas Karidis, Member Mr. Panayiotis Oustas, Member Mr. Aristos Aristidou Palouzas, Member Mr. Polinikis Panayiotis Charalambides Member Date of decision: 26 November 2021 SUMMARY OF DECISION On the 29th of October 2021 the Commission for the Protection of Competition (hereinafter the “Commission”) received on behalf of ironSource Ltd (hereinafter the «ironSource») a notification of a proposed concentration. The notification was filed according to Section 10 of the Control of Concentrations between Enterprises Law 83(I)/14 (hereinafter the “Law”). The notification concerns a concentration, according to which ironSource intends to acquire 100% of the share capital of Chompi CC Networkings Ltd (hereinafter the "Target"). Companies participating at this merger are the following: 1
- IronSource is a limited liability company, duly registered under the Law of Israel, with shares listed on the NYSE. IronSource is a leading business platform that enables content creators for mobile devices to thrive in the app economy. Their services, primarily enables application developers to turn their applications into scalable, successful businesses. At the same time, provides internet marketing solutions for mobile marketers.
- Chompi CC Networkings Ltd (Target Company) is a software company duly registered under the Law of Israel that operates under the name "Bidalgo" (hereinafter "Bidalgo"). It is a Software as a Service (SaaS), a software used for creative analysis and knowledge platform, which allows application advertisers to gain unparalleled knowledge and control of their marketing activity through Bidalgo Marketing Intelligence platform. The concentration takes place on the basis of document "Share Purchase Agreement" (hereinafter referred to as the "Agreement") dated October 25, 2021 which sets out the main terms and conditions regarding the acquisition of the share capital of the Target Company. The Commission, taking into account the facts of the concentration, has concluded that this transaction constitutes a concentration within the meaning of section 6
(1)(a)(ii) of the Law, since it leads to a permanent change of control of target by ironSource. Furthermore, based on the information contained in the notification, the Commission found that the criteria set by section 3
(2)(
- a)of the Law were satisfied and therefore the notified concentration was of major importance falling within the scope of the Law. The relevant products/services in this case were defined as the (
- a)the Monetization market for Mobile App Publishers, (
- b)the market for Internet Advertising Solutions and Advertisers (
- c)the market of Ad Performance Measurement Platforms for Application Developers / Marketers. In addition, the Commission concluded that the geographic market for all the relevant markets is that of the territory of the Republic of Cyprus. Based on the notification, there is no a horizontal overlap between the activities of the participating parties. 2 In addition, based on the data of the notification, there is no vertical relationship between the activities of the participating parties. Taking into account the above, the Commission concludes that in this concentration no affected market is created based on Annex I of the Law. In addition, there are no other markets in which the notified concentration may have a significant effect. The Commission, on the basis of the factual and legal circumstances, unanimously decided that this concentration does not create or strengthen a dominant position as there is no affected market and therefore the concentration does not raise serious doubts as to its compatibility with the operation of the competition in the market. Therefore, the Commission, acting in accordance with section 22 of the Law, unanimously decided not to oppose the notified concentration and declare it as being compatible with the operation of the competition in the market. Loukia Christodoulou Chairperson of the Commission for the Protection of Competition 3