HIGHWAY GENERAL SERVICE STATIONS/ AUTOSTRADE-AUTOGRILL (Conclusion of a full phase investigation)
PRESS RELEASE
After having started a proceeding on January 18th, 1996 against Autostrade and Autogrill, on the basis of a complaint filed by Adusbef and Europ Assistance, the Authority decided that:
(a) the adoption and implementation, up to date, of the specific regulation arranged in 1973 by Autostrade, in order to regulate the relationships with the licensees as for the access to highway general service stations, constitutes an abuse of dominant position;
(b) the contract undersigned by Autostrade and Autogrill in 1988 constitutes an agreement which has as its object or effect restriction of market access within the sectors of catering and sale of food and non-oil goods.
Imposition of the regulation adopted in 1973 violates Section 3 (abuses) of Law no. 287/90, on the basis of the following grounds:
- competition amongst services on a same service station is excluded;
- the licensees working already in a service station are guaranteed the development of their services or the assignment of new services;
- if and when a new license should be granted, the licensee working in the service station contiguous to the one which is to be assigned is preferred.
The abusive conduct of Autostrade - which licenses service stations to third parties for the sale and provision of food and non-oil goods over 52 per cent of the Italian highway network - impeded access to the markets of catering (waiter/waitress service or self service restaurants), bar service and sale of food and non-oil goods.
The contract stipulated in 1988 gives rise to a restrictive agreement, on the basis of the following reasons:
(a) that Autostrade undertook to grant Autogrill 90 per cent of new licenses for the catering service (restaurants), and 80 per cent of new licenses for bar services and markets;
(b) that Autostrade granted two five-yearly automatic extensions of the licenses (respectively up to 2008 and 2013), as provided for by a clause concerning a pre-emption right, which prevented potential competitors from replacing Autogrill as Autostrade's direct licensee;
(c) that Autogrill granted an exclusive right at level of single service station with respect to the provision of food and beverages, food market and sale of non-food goods (goods submitted to state monopoly - e.g., tobacco, lighters, etc. - dailies and magazines, lotteries)
In the course of the proceeding, Autostrade adopted a new specific licensing regulation which will replace all regulations implemented up to date. This new regulation removes the provisions which were subject of the remarks made by the Authority. In addition, Autostrade-Autogrill arranged another contract which will replace completely the one stipulated in 1988.
The new regulation allows to overlap the sale of various products (take-away food and non-food products) amongst licensees of restaurants and service stations, in such a way as to foster competition amongst such parties within a same area. Lastly, Autostrade must authorize the sale of such products, after having verified that the applicant has suitable-sized places available to sale take-away food and non-food goods.
The new agreement stipulated by Autostrade and Autogrill removes the provisions contained in the previous one, which hampered market access. Further, in this new contract, Autostrade undertook:
(a) to sale to third parties, by one year, 6 out of its own 83 restaurants licenses;
(b) to not participate, directly or indirectly, in the reassignment of at least 6 licenses expiring on December 31st, 2003, and concerning service stations which are still unidentified but can guarantee a solution of continuity on the highway network in Autogrill's presence;
(c) to not participate, directly or indirectly, in the bid for five new restaurant licenses that Autostrade intends to grant within the current network in the next years, as well as in the further and eventual tenders which should occur by 2001.
The Authority decided that both the new regulation and the new agreement are appropriate to cease restrictions on competition, to the extent in which they will be fully implemented.
As a result of the Authority's decision, obstacles to the entry of new operators into the catering market and the sale of food and non-food products on the highway network were eliminated. In particular, the broadening of competitive possibilities amongst the parties already present in a service station, even though working in contiguous markets, strengthens competition. In this sense, it is to be noted that oil companies seem to be willing to enlarge their offer to non-oil goods.
Following the Authority's decision, new competitors will be able to access the six service stations "cleared" by Autogrill, to which other six service stations will be added by 2003. Lastly, the entry of new rivals will be encouraged also by Autogrill's commitment to not participate in bids for new licenses up to 2001.