OLBIA READY-MIXED CONCRETE MARKET (Conclusion of a full phase investigation)
PRESS RELEASE
The Italian Competition Authority concluded the proceeding initiated in September 1996 against Calcestruzzi Spa, Italcalcestruzzi Spa, Unicalcestruzzi Spa and Calcestruzzi Dau Srl.
The investigation was aimed at ascertaining: (a) the existence of restrictive agreements in the ready-mixed concrete market in Olbia (Sardinia); (b) the existence of a coordination of the commercial policies adopted by the above mentioned firms in other local concrete markets, given the involvement of Calcestruzzi Spa, Italcalcestruzzi Spa and Unicalcestruzzi spa.
In particular, on the one hand, the investigation dealt with agreements signed between Calcestruzzi Spa, Italcalcestruzzi Spa, Unicalcestruzzi Spa and Calcestruzzi Dau Srl in the ready-mixed concrete market in Olbia, between 1992 and 1996; on the other hand, agreements signed between Calcestruzzi Spa and Italcalcestruzzi Spa in other Sardinia local markets (Cagliari, Carbonia, Oristano, S. Gavino).
The Authority found that the agreements signed between the above mentioned firms violated Section 2 of Law no. 287/90, in consideration of the following grounds:
(a) the parties fixed concrete selling price by arranging price lists and determining maximum discounts and uniform conditions concerning the ancillary performances;
(b) the parties shared the market by allocating large scale works and sharing out the orders for the product.
In fact, on the basis of concerted price lists, the parties involved in the investigation set maximum discounts to apply to different types of customers and agreed the allocation of large scale works, even through the exchange of customers. As such, the agreements could be modified in relation to the changes in conditions of each market concerned, in order to ensure the compliance with predetermined market shares and therefore to guarantee market outlets to all the parties. The main parties involved, namely Calcestruzzi Spa, Italcalcestruzzi Spa, Unicalcestruzzi Spa - by implementing this strategy - affected appreciably equilibrium of the markets involved so as to overturn the ordinary price trend.
As such, the Authority found that the agreements had as their object and effect appreciable restriction of competition between the participants, by limiting jointly their autonomy as well as the possibilities to react independently to the changes in the demand and supply conditions of the markets concerned.
On the basis of the above reasons, the Authority ruled that:
(a) Calcestruzzi Spa, Italcalcestruzzi Spa, Unicalcestruzzi Spa and Calcestruzzi Dau Srl violated Section 2, subsection 2, of Law no. 287/90, since they signed agreements having as their object and effect appreciable distortion of competition in the ready-mixed concrete market in Olbia;
(b) Calcestruzzi Spa and Italcalcestruzzi Spa violated Section 2, subsection 2, of Law no. 287/90, since they participated in agreements having as their object and effect appreciable distortion of competition in the ready-mixed concrete markets in Oristano and San Gavino as well as their effect appreciable distortion of competition in the Cagliari and Carbonia markets;
As such, the Authority ordered Calcestruzzi Spa, Italcalcestruzzi Spa, Unicalcestruzzi Spa and Calcestruzzi Dau Srl to cease the agreements aimed at sharing market and fixing concrete price in different Sardinia markets, as well as to desist from participating in the future in any agreement having as the same anti-competitive effects as those ascertained during the investigation.
Considering the seriousness and the duration of the infringements, the Authority imposed on Italcalcestruzzi Spa, Unicalcestruzzi Spa and Calcestruzzi Spa administrative fines respectively equal to 857,190,000; 36,350,000 and 597, 786,000 lira.