ITALGAS/NATIONAL ASSOCIATION OF GAS INSTALLERS AND MAINTENANCE WORKERS (Conclusion of the investigation)
PRESS RELEASE
The Italian Competition Authority imposed anadministrative fine of 2 billion and 140 million lire on Italgas which failed to comply with previous notification requirements contained in the Authority’s decision of July 19th, 1996.
On that occasion, the Authority ruled that Italgas' concession to its controlled Gasenergia of the instalment billing service for the maintenance of the gas device installed constituted an abuse of dominant position. At the same time, Italgas refused to grant competitors the above service at equal terms. As such, Italgas was ordered to cease its violation and inform the Authority of the measures taken in order to restore competition.
In August 1996, Italgas said that the contract with Gasenergia wascanceled and, therefore, they intended to broaden the instalment billing service to all the gas maintenance companies.
However, the Authority ascertained that Italgas has not desisted from its conduct and has kept giving a competitive advantage to Gasenergia to work in the market of gas utility systems maintenance and supervision, by granting exclusively the controlled company the instalment billing service.
The Authority considered Italgas' failure very serious, given that the company has tried to expand its dominant position through Gasenergia and has created a disadvantage situation for competitors.
This being so, the Authority imposed on Italgas an administrative fine equal to 4 per cent of Gasenergia's total sales amounted to 53,5 billion lire in 1996. The fine is of 2,140 billion lire and is to be paid within 90 days of receiving notification.