DRIVING SCHOOLS (Conclusion of the investigation)
PRESS RELEASE
The Italian Competition Authority has concluded the proceeding initiated last October against two national driving school associations, UNASCA (National Association of Driving Schools and Car Consultancy Companies) and FEDERTAAI (Association of Italian Driving Schools and Agencies) as well as a local association and a consortium.
In the course of the proceeding, the Authority found that the parties involved in the investigation violated section 2 of Law no. 287/90. As such, the Authority decided that they have to remedy the infringement and has issued a cease and desist order.
The Authority ascertained the anticompetitive effect of the conduct undertaken by UNASCA and FEDERTAAI, who in December 1994 jointly fixed at 230,000 lira the price for the "out of school" candidates for the driver's licence. Furthermore, it was also ascertained that the individual driving schools were invited to limit the number of such candidates, not to carry out promotional activities concerning their services and to watch over their instructors so that they would not work for potential rivals (car rental companies).
The indications given by UNASCA and FEDERTAAI were followed by nearly all the associated driving schools which applied the tariff imposed by the two associations. In so doing the driving schools believed that they could find protection from price competition. On the basis of the findings of the investigation, the Authority finally ascertained that the two associations gave clearcut guidelines to the driving schools so that they would reduce to a minimum the assistance supplied to the "out of school" candidates. Evidence of the anticompetitive effects arising from the agreement was found in the city of Rome, where competition exercised by the car rental companies brought about a price reduction of approximately 30 per cent.
In conclusion, the Authority found that, in spite of the absence of an explicit law, in certain provinces the local driving schools associations and consortia informed the Provincial Motorvehicle Administrations and, subsequently, adopted the tariff lists which indicated minimum prices.