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Spain Fines Mémora for Breach of Merger Commitments

Editorial
Last updated: May 8, 2025 5:56 am
Editorial
Published May 8, 2025
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Photo by Rhodi Lopez on Unsplash

The Spanish competition authority imposes a €108,000 fine on Mémora for failing to uphold commitments made in the acquisition of Rekalde and Irache.

“Mémora Servicios Funerarios” is a funeral services company based in Spain. They offer a wide range of services related to death care, such as organizing funerals, providing transportation, burial, and cremation services, and assisting with paperwork and legal matters after a loved one’s passing.

The Spanish National Commission on Markets and Competition (CNMC) has concluded the sanctioning procedure against Mémora Servicios Funerarios, S.L.U. (case SNC/DC/011/25), determining that the company breached essential commitments undertaken as part of the acquisition of funeral service providers Rekalde and Irache, authorized in 2021 under merger case C/1151/20.

The commitments were critical conditions imposed by the CNMC to ensure that the transaction would not harm competition in the affected local markets of Guipúzcoa and Navarra. Among these obligations, Mémora was required to maintain the economic viability and competitiveness of certain funeral homes—most notably the traditional Zarauz funeral home—until they could be divested to independent third parties. The company was also obligated to submit monthly monitoring reports to the CNMC detailing progress on the divestment process.

However, following an extensive monitoring process under case VC/1151/20, the CNMC found that Mémora closed the Zarauz funeral home entirely for at least eight months shortly after the transaction was executed in March 2022. During this period, client services were redirected to a newly opened Mémora facility in the same municipality, which experienced a significant increase in activity. This redirection, according to the CNMC, effectively undermined the competitive position and commercial appeal of the Zarauz facility, in clear contradiction of the commitments made.

In addition, the CNMC found that Mémora failed to submit the required monthly reports on five separate occasions without justification, thus breaching its obligation to facilitate regulatory oversight.

Despite these infringements, Mémora acknowledged its responsibility and opted for an early payment of the fine. By doing so, it availed itself of a reduction mechanism under Article 85.3 of Law 39/2015 on Common Administrative Procedure, which allows for a penalty reduction of up to 40%. Consequently, Mémora paid a reduced fine of €108,000.

While the divestments were ultimately completed in March 2024—after the maximum allowed extensions and following CNMC intervention—the authority emphasized that the fulfillment of the main commitment (divestment) does not absolve the company of its obligation to comply fully and timely with all related commitments and procedural safeguards.

The CNMC concluded that Mémora’s actions constituted a serious breach of the Spanish Competition Act (Law 15/2007). As a result, the Commission has referred the case for potential sanctioning under Article 62.4(c) of the same law, which covers failures to comply with commitments attached to merger approvals.

This resolution brings the administrative phase of the proceeding to an end, although Mémora retains the right to appeal before the Audiencia Nacional within two months of the notification date.

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TAGGED:acquisitionBreach of Mergercnmcfuneral servicesMémora Servicios FunerariosSpain

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