ADVERTISING AGENCIES (Start of full phase investigation)
PRESS RELEASE
The Italian Competition Authority has initiated a proceeding against the principal advertising agency associations, to investigate an alleged violation of Section 2 of Law no.287/90. The associations involved in the investigation are the following:
Italian Association of Full Service Advertising Agencies (ASSAP);
Italian Association of Communication Agencies (AIPAS);
Association of Italian Advertising and Communication Agencies (OTEP);
Italian Association of Sales Promotion Agencies (ASP);
Association of Italian Direct Marketing Agencies (ASSODIRECT).
Association of Full Service Public Relation Agencies (ASSOREL).
These associations are alleged to have stipulate anticompetitive agreements. In particular, ASSAP, OTEP and AIPAS, - which cover altogether approximately 90% of the communication market - have adopted an interassociation tariff list indicating the prices to be applied to clients for the payment of services which, ordinary, are not included in the agency's fee. Further, OTEP, ASP and ASSODIRECT have developed a their own tariff list that integrates the interassociation one. The adoption of tariff lists indicating the minimum prices for the payment of certain services seem to restrain the competitive conduct of the single agencies and to coordinate their price choices. In addition to the tariff lists, the associations have arranged a typical contract scheme as well as contractual guidelines in favour of their associated. Some of these contractual schemes contain clear price indications concerning the agency's fee or the "agency's discount" (the discount applied by the advertising concessionaires in favour of the advertising agencies' clients). These contractual schemes also can constitute a coordination of advertising agencies' choices in order to restrict competition. On the basis of the findings of the preliminary examination, the Authority deems that the advertising agencies' price policies on the whole - not only with regards to the above mentioned tariff lists - are likely to be coordinated both at associative level and at inter-associative one.
The investigation is to be concluded by the end of December 1996, within 180 days of the commencing of the proceeding.