SVILUPPO DISCOUNT/GESTIONE DISCOUNT
PRESS RELEASE
PRESS RELEASE
The Authority is investigating COOP ITALIA and CONAD
The Competition Authority has began on investigation into a number of co-operatives belonging to the COOP ITALIA consortium (Novacoop, Coop Lombardia, Coop Liguria, Coop Adriatica, Coop Nord-Est, Coop Estense, Coop Toscana-Lazio) and the CONAD NAZIONALE consortium (Nordiconad, Conad Romagna-Marche, Conad Del Tirreno, Conad Centro-Nord), in order to ascertain whether the constitution of a jointly-owned company (DICO S.p.A.), to manage 140 soft-discount stores might constitute an agreement restricting competition in the commercial distribution industry.
Under this operation, for which notice had been submitted the Authority in advance, the jointly-owned company, DICO, has acquired control of 140 businesses each with a sales outlet, of which 71 belonging to GESTIONE DISCOUNT (COOP) and 69 to companies controlled by TOP DI’ (CONAD). The sales outlets, which the parties have defined as hard discount stores, are actually soft discount stores.
Even though it would appear that the jointly-owned company DICO can perform most of the entrepreneurial functions that are necessary to run discount stores, operate and has almost almost total functional autonomy, leaving centralized acquisitions entirely to COOP ITALIA, it will be operating on the modern distribution markets in which the seven co-operatives belonging to COOP ITALIA are also operating together with the 4 retailing co-operatives belonging to CONAD NAZIONALE. Considering that the soft discount stores complete with other modern sales outlets of similar sizes, the agreement could have the effect of also permitting coordination between the parties to it in other segments of the modern distribution trade.
Rome, 14 December 1999