NEWS

VTech/LeapFrog merger cleared by CMA

Published on: 13th January 2017

The merger of the children’s toy companies has formally been cleared.

VTech-480An in-depth investigation by a group of independent Competition and Markets Authority (CMA) panel members has confirmed that the merger is not expected to result in a substantial lessening of competition.

The panel found that although the individual respective companies are close competitors in the supply of learning toys for 0-5 year olds, there are numerous other credible suppliers in the sectors, and the two companies were not each other’s closest competitor.

Philip Marsden, Inquiry Chair, said: “We looked carefully at competition in the evolving and innovative toy industry, and in particular at learning toys and child tablets. Having consulted on our provisional findings, we are still satisfied that even after the merger there will be a sufficient variety of learning toys for 0 to 5 year olds available, and an increasing choice available for people who want to buy electronic devices and content suitable for children”.

The group also found that the market for child tablets and content is evolving rapidly, with new entrants and an increasing number of alternatives available for child-appropriate content on electronic devices.

The CMA began its initial investigation in April 2016. It then referred the case for in-depth investigation on 30th August, and published its provisional findings on 9th December 2016.

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