LATTE ARTIFICIALE PER NEONATI
PRESS RELEASE
PRESS RELEASE
The Authority has opened an investigation into artificial baby milk
The Antitrust Authority has resolved to commence an investigation into the Nestlé, Star, Plada, Nutricia, Milupa, Humana and Abbott companies to ascertain alleged violations of Section 2 of the Antitrust Act which prohibits agreements that distort competition. These companies are the largest producers and importers of artificial baby milk and jointly account for a nationwide market share of over 90%. The investigation was begun as a result of a complaint from a consumers' association.
It will investigate the possibility that concerted practices or agreements have been concluded between these companies to coordinate their behaviour in two respects. First of all, the investigation will see whether an agreement exists on a number of aspects of their commercial policies, particularly the choice of the pharmaceuticals distribution channel. According to the documentation in possession of the Authority, 96% of artificial baby milk sales are currently distributed through chemist's shops and pharmacies, despite the fact that several retail chains have requested supplies from some of the leading manufacturers in Italy. According to the data collected, pharmacies routinely charge the prices recommended by manufacturers and published in their yearbooks. The result of this behaviour seems to be unjustifiably high prices are being charged in comparison with those charged in other European countries (sometimes double), while the sale of artificial baby milk through retail chains would offer substantial benefits, and savings, to consumers.
Secondly, the investigation will seek to discover whether an agreement exists to distribute artificial milk, free of charge, to private clinics and maternity departments in hospitals (on what is known in Italy as a 'shift' basis). This initial contact by mothers with the baby food has a markedly decisive influence on their subsequent purchasing habits. Moreover, by sharing out this baby milk free of charge on the basis of agreed 'shifts', to ensure that no new products are able to be distributed in the maternity units, any subsequent choices by consumers will automatically exclude the purchase of any such new products.
Rome, 12 May 1999