The Austrian Federal Competition Authority (AFCA) was notified of the merger of Diebold, Incorporated, North Canton, USA (“Diebold”) and Wincor Nixdorf AG, Paderborn, Germany (“Wincor Nixdorf”) in 2016, clearing it subject to binding commitments (BWB Z-3019).
The merger concerned financial self-service solutions, namely hardware, software and related services for customer-operated cashpoints in the banking area. This includes cash dispensers and cash deposit ATMs, cash recyclers, bank statement printers, account service terminals and coin counters (“FSS solutions”).
Request from Diebold for amended commitments
In 2023, Diebold Nixdorf GmbH applied for the commitments to be amended. The AFCA then conducted an extensive market survey and questioned competitors and (potential) customers (particularly banks) in the following markets:
- Manufacture and sale of FSS hardware
- FSS maintenance.
Ultimately, the AFCA found that the existing commitments were still necessary in order to eliminate competition concerns in connection with the merger. The relevant circumstances requiring remedies had not changed, which meant that the commitments could not be amended or lifted.
The aim of imposing the commitments is to preserve competition in the FSS maintenance market, considering Diebold Nixdorf’s strong market position in selling the devices. Diebold Nixdorf’s customers should also be able to have maintenance, which needs to be done at regular intervals, carried out by independent maintenance providers or their own service teams. The commitments ensure that Diebold will provide access to the required technical information, support, original spare parts etc. The commitments refer to “appropriate remuneration” for the provision of this access. It has now been clarified in the amendment proceedings that such remuneration must at least cover any costs incurred in connection with the rendered services.
The following commitments made in 2016 are still binding:
- Obligation to ensure that Diebold Nixdorf FSS machines are interoperable with third-party FSS software
- Obligation to enable the maintenance of Diebold Nixdorf FSS machines in Austria by the customers themselves or by independent service providers
- Provision of support for the existing portfolio of FSS machines.