Bratislava, 10 March 2025 – The Antimonopoly Office of the Slovak Republic (AMO) has fined gambling sector entrepreneurs Synot W, a.s. (Synot) and Ing. Igor Vicel (entrepreneur IV) a total of over €428,000 for violating merger control rules by failing to notify and prematurely implementing their concentration.
The case concerns the acquisition of joint control over Slovmatic, s.r.o. by Synot and IV on 24 June 2020. Both companies operate in the gambling sector, making this a merger between direct competitors. However, key steps in the transaction, including the transfer of business shares, changes in management and supervisory boards, and financial operations, were undertaken before notifying the AMO, a practice known as gun-jumping.
What Is Gun-Jumping?
Gun-jumping occurs when companies either fail to notify a merger before implementing it or proceed with integration before regulatory approval. This premature execution can include exchanging sensitive business information, coordinating operations, or restructuring management. The term originates from sports, referring to athletes starting before the official signal. In competition law, gun-jumping is particularly serious when it involves mergers with potential anticompetitive effects, as it may lead to irreversible market distortions.
Regulatory Findings and Penalties
The AMO found that Synot and IV violated Slovak competition law by failing to notify the concentration in advance and by implementing aspects of the merger before obtaining approval. Although they later voluntarily notified the transaction, the AMO conducted a separate assessment of its competitive impact and approved it with conditions. However, due to the violations, fines were imposed:
- €400,000 on Synot
- €28,500 on entrepreneur IV
In determining the penalties, the AMO considered the severity and duration of the violations, as well as aggravating and mitigating factors. Both companies admitted to breaching competition law and used the settlement procedure, leading to a 50% reduction in their fines compared to the original amount.
The decision took legal effect on 7 March 2025.
