GENERALE SUPERMERCATI-STANDA/SUPERCENTRALE/IL GIGANTE (Start of full phase investigation)
PRESS RELEASE
The Italian Competition Authority has initiated a proceeding against Generale Supermercati, Standa and Il Gigante to investigate alleged violation of Section 2 (agreements) of Law no.287/90.
The proceeding originated from a voluntary complaint filed by GS and Standa with regards to two subsequent agreements. The former is stipulated by the two complainants and concerns the constitution of a joint venture named Supercentrale working as purchasing centre.
The latter, undersigned by Supercentrale and Il Gigante, is aimed at expanding also to Il Gigante the activity carried out by Supercentrale for its two partners. The operation is designed for the creation of a company which concentrates the purchasing dealings of products that the parties involved are interested in, and deals with the drawing of unitary agreements in order to undersign the single contracts.
The three companies involved in the operation work in the wholesale and retail food and consumer goods markets, through medium and big sized outlets. As such, they cover, on the supply hand, the retail distribution market, and, on the demand hand, all the markets regarding the commercialized products. Given the particular nature of the agreement subject of the investigation, which is aimed at coordinating the companies' purchasing behaviours, it could have anticompetitive effects on both the market outlets of the parties involved, and their markets of supply.
With regards to the first aspect, the Authority intends to ascertain whether, through the creation of Supercentrale, a uniformity of the product range, of the prices and of the promotional policies adopted by the parties involved would occur in such a way as to reduce substantially the companies incentives to compete effectively.
In relation to the second aspect, the Authority has to verify if the agreement can reduce competition on specific product lines or specific local markets, on which Supercentrale can hold a position of economic superiority towards the supplier/producer.
In both cases, and also in order to decide if an exemption from the prohibition of agreements restricting competition is to be issued, the Authority has to consider if consumers can take advantage of the capacity of performing economies of scale.