The Autorité de la concurrence identifies for the first time the provision of coworking spaces as a relevant market

On 10 August 2021, the French Deposit and Consignment Office (Caisse des dépôts et consignations) and Nexity notified the Autorité de la concurrence of their intent to acquire joint control of Miniburo, a company that will offer coworking spaces in the Île-de-France region.

The parties to the transaction

The French Deposit and Consignment Office is a public institution that carries out public interest missions in support of the public policies of the State and local public authorities. In the Miniburo project, it will be involved primarily through its management of the Programme d'Investissement d'Avenir (Investments for the Future Programme, hereinafter, "PIA"). This programme stems from the agreement of 10 May 2017 between the State and the CDC on the Investments for the Future Programme ("Territoires d'innovation de grande ambition" action).

Nexity is a French group, which is active in the property development and services sectors in France and Europe. Its involvement in Miniburo will be together with its subsidiary Morning, which offers coworking spaces in France.

The companies will share joint control of Miniburo.

New market identified: the provision of shared workspaces

The Autorité examined the effects of the transaction in the property sector, in particular in the market for the provision of shared work (coworking) spaces, which had not yet been assessed.

After carrying out market tests with the sector's stakeholders, it appeared that the provision of shared workspaces is different from the other activities in the property sector. This activity includes all the services relating to the provision of workspaces on a one-off or recurring basis for individual or self-employed workers or companies, which are not covered by long-term office rentals.

CDC and Nexity are active in this market through their subsidiaries, in addition to their activities in property asset management and property development. Their subsidiary Miniburo will also be active in this market.

The effects of the transaction examined by the Autorité

In its analysis, the Autorité assessed the effects of the transaction, which result on the one hand, from the parties' overlapping activities in the market for the provision of shared workspaces and, on the other hand, from the link between this market and the property asset management markets.

In addition, the Autorité analysed whether, given the nature of the transaction, a risk of coordinated behaviour by CDC and Nexity existed.

After examination, the Autorité ruled out any risk of anticompetitive effects from the transaction, given the parties' limited market shares and the presence of numerous competitors in the market for the provision of shared workspaces.