Idealista Withdraws Kyero Acquisition Bid Amidst Scrutiny from Portuguese Regulator
The board of directors for Idealista, the leading real estate marketplace in Southern Europe, has formally announced its decision to terminate the acquisition of Portal47 Ltd, the company operating the Kyero property portal. The move comes after Portugal's Competition Authority (AdC) initiated an in-depth investigation into the deal, citing potential harm to market competition. Idealista stated that the 'unjustified delay' caused by the regulatory body had 'severely deteriorated the conditions of the operation,' leaving it with no choice but to withdraw.
The acquisition, first announced nearly a year ago, was intended to integrate Kyero, a portal focused on international buyers seeking property in Portugal, Spain, France, and Italy, into Idealista's portfolio. However, the AdC raised red flags, suggesting the transaction could lead to a 'strengthening of Idealista's market power through the absorption of a relevant competitor, reducing the choice available to consumers.' The regulator noted that Idealista had been given the opportunity to present 'commitments to remedy the competition concerns' but had opted to abandon the procedure instead.
In response, Idealista criticized what it termed 'hyper-regulation,' arguing that Kyero holds a minimal footprint in Portugal, accounting for approximately 1% of the market with only a small fraction of its European clients being Portuguese. A company spokesperson expressed concern that the AdC might be using the minor acquisition as a pretext to 'pronounce on Idealista's future activity.' The company further warned that such rigid regulatory actions in the EU often 'end up favoring the growth of non-European companies in Europe at the expense of technology companies born within the seio da UE.'
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The real estate technology firm also pointed to the broader implications for European innovation, referencing former ECB President Mario Draghi's report on the EU's lagging competitiveness. Idealista highlighted that 'regulatory fragmentation' and slow approval processes make it difficult for European companies to achieve the scale needed to compete with global giants from the US and Asia. 'Unfortunately, Draghi was right in his diagnosis and there is no optimistic future for the European technology sector,' an Idealista representative stated, painting a grim picture for homegrown digital champions.
The AdC defended its process, stating that an in-depth investigation is standard procedure whenever an operation 'raises serious doubts' about its impact on fair competition. The authority confirmed it had communicated its concerns to Idealista before the company decided to pull out. This clash between a major market player and a national regulator underscores the increasing scrutiny being placed on digital marketplaces and their influence over the real estate industry. The outcome serves as a cautionary tale for other tech firms considering consolidation within the Portuguese market, signaling the AdC's robust enforcement of competition law. Connect with trusted real estate professionals at realestate-lisbon.com.