OPERATORS IN THE SECTOR OF EXPLOSIVES FOR THE MINING INDUSTRY (Start of full phase investigation)
PRESS RELEASE
The Italian Competition Authority initiated a proceeding against the main Italian firms producing and distributing explosives for the mining industry. The parties involved in the proceeding are Italesplosivi, Cheddite Italia, Dinamite Dipharma, Internazionale Esplosivi, Mangiarotti, Cocciuti, Pravisani, SEI, Sipe Nobel, Sme e Sorlini. They are alleged to have implemented agreements aimed at sharing production and sales, as well as fixing prices.
The Authority deemed that such agreements could restrict competition, in compliance with Section 2 of Law no. 287/90.
Italesplosivi, which distributes explosives on the Italian market on behalf of firms competing among themselves, could be the means by which to coordinate the commercial policies of its stockholders and the represented undertakings.
Restrictions on competition could be appreciable, given the importance of the parties involved in the agreements. Indeed, they represent over 90 per cent of the Italian market of explosives for the mining industry.
In 1975, the European Commission started a proceeding to investigate an agreement which was similar to that one subject of the Authority's investigation.
Following the Commission's investigation, the parties involved in the agreement would have decided to modify it. By contrast, on the basis of the documents acquired by the Authority, Italesplosivi and the represented firms would have limited to a formal amendment of the agreements in such a way as not to affect them substantially.