Stampa

AGIPPETROLI/KUWAIT PETROLEUM ITALIA (Start of investigation)


PRESS RELEASE



The Italian Competition Authority has initiated a proceeding against AgipPetroli and Kuwait Petroleum Italia to investigate an alleged violation of Section 2 (restrictive agreements) of Law no. 287/90.

The proceeding originated from a notification filed with the Authority of an agreement between the parties in the petroleum refining sector as well as in the physical distribution of oil goods.

In particular, the notification deals with a document which was undersigned by the parties on July 14th, 1995, and established conditions for the stipulation of subsequent agreements with regards to:

(1) the joint management of an oil refinery;

(2) the exchange of finished goods;

(3) the sale on behalf of AgipPetroli to Kuwait of many service stations.

The agreements relating to the petroleum refining, on the one hand, and the physical distribution of oil goods, on the other hand, were considered as the expression of a unitary programme aimed at having effects also on the market of fuel final distribution. With regards to the sale to Kuwait of 336 service stations, the Authority ruled that the agreement has not created any anticompetitive effects and, therefore, decided not to oppose the above sale.

On the contrary, the Authority deemed that the remaining part of the agreement concerning the strict tie between the parties, both in the petroleum refining, and in the physical distribution, would restrict competition between the parties themselves.

As such, it is to be noted that the carrying out of the agreement, in all its three parts, is aimed at having two effects:

(a) on the one hand, it can strengthen Kuwait and, at the same time, downsize AgipPetroli's distribution system, because of the acquisition by Kuwait of a high number of AgipPetroli's sales outlets (branded Agip and IP);

(b) on the other hand, it can affect the competitive relationship between the parties involved with regards to the petroleum refining and the physical distribution.

In this case, the agreement not only provides for the creation of a production joint venture, but it also covers all physical distribution services, with likely anticompetitive effects. In particular, the contract that regulates the exchange of products could lead to a coordination of the parties' commercial policies, with consequences on oil goods selling prices. This circumstance could occur in those local markets where the firm, without its own physical distribution base, can not supply itself with subjects which are different from its own contractual opposite party.