DISTORTIONS ON COMPETITION IN THE FOOD AND AGRICULTURAL SECTOR (Advisory opinion)
PRESS RELEASE
The Italian Competition Authority submitted to the Speakers of the Senate and Chamber of Deputies, the Prime Minister and the Minister for Agriculture and Forestry an advisory opinion concerning a draft legislative decree according to which a high number of agreements between undertakings in the food and agricultural sector would be exempted from complying with the Competition Act.
The decree in question deals with the enforcement of Section 55, subsection 14, of Law 449/97, stating provisions on the reduction and harmonization of production costs and the strengthening of agricultural firms. In particular, the Authority criticized the rules set forth in Section 11 and 12 of Title III of such a decree for coming into conflict with both national and Community competition principles. The Authority therefore advocated the removal of these rules.
The exemption granted by the decree in question for agreements in the food and agriculture sector is not to be considered as an integration and interpretation of Community rules, as the references to Section 42 of the Treaty and EC Regulation no. 26/62 would mean. Indeed, such a broad exemption comes into conflict with Community rules and principles, in that the Commission adopts more and more a very limited number of block exemptions.
The legislative decree has caused most concern to the Authority in that it is designed to clear agreements between and decisions or concerted practices by undertakings in a sector where a number of restrictive agreements were ascertained.
In addition, the Authority highlighted that the objective of increasing competitiveness of the national food and agriculture is explicitly contained in Section 55, subsection 14, of Law no. 449/97, wherein the criteria and principles for law enforcement are set out. Such criteria, which should constitute the legal basis of the legislative decree, are contradicted, by contrast, by granting a broad exemption from the application of competition rules.