REGIONAL MEASURES IMPLEMENTING DL 114/98 ON COMMERCIAL DISTRIBUTION (Advisory opinion)
PRESS RELEASE
PRESS RELEASE
Opinion of the Antitrust Authority submitted to the Regions regarding commercial distribution
The Antitrust Authority has submitted an opinion to the Presidents of the Regional governments, to draw their attention to the need to ensure that any regional measures adopted to implement DL no. 114/98 governing commercial distribution do not introduce any restrictions on competition that are not strictly justified in the general interests of protecting town planning and consumers. More specifically, if the Regional governments used their powers under Decree no. 114/98 to reintroduce forms of planning supply, maintaining existing distribution arrangements as they are at the present time, this would be a violation of the principles of competition. This would arise if such measures prohibited the opening, extension or transfer of commercial outlets with the aim of regulating supply and demand.
Future regional measures and measures already being planned by certain municipalities create a serious risk that supply and demand regulations are likely to be reintroduced, purely to protect what already exists. By definition, this is in contrast with the dynamic operation of the market. The experience of implementing earlier commercial distribution legislation has shown that it is not only impossible, but it is actually counter-productive, to try to artificially curb the development of supply in any area on the grounds that the demand is being adequately met by what already exists.
From the point of view of competition, it is to be hoped that the many regional measures governing trade will avoid consolidating existing arrangements. The provision of support for small firms should also be provided without protectionism, and should be implemented purposefully to enable them to find the best way of keeping pace with the evolution of the market. It is therefore very important to abolish the commodity tables and any other measures which encourage forms of association and conversion of the small and medium firms operating in the sector.
In short:
a) regional measures must avoid imposing very stringent procedures for examining applications for permits to open medium and large commercial centres, designed to regulate the structure of the market. In particular, no reference should be made to any pre-determined territorial units within which to mechanically lay down quantitative criteria for assessing individual applications for permits;
b) applications for permission to open medium and large commercial centres refusal should only be rejected in the case of those which would cause specific damage to the public interest. The reasons for refusing permits must be given in detail and be clearly argued;
c) no regional measures should be reintroduced equivalent to the old commodity tables;
d) the power of municipal authorities to freeze the opening of "neighbourhood commercial centres" for two years should be strictly limited only to cases in which it is really necessary to protect the town planning environment and consumers;
e) when criteria are laid down for urban planning, no provision should be introduced which is designed to programme trade.
Rome, 22 April 1999