LATTE ARTIFICIALE PER NEONATI
PRESS RELEASE
PRESS RELEASE
Seven babies' powdered milk companies
have been found liable of anti-competitive behaviour
The Competition Authority resolved at its meeting on 2 March 2000 that Nestlé, Heinz Italia (formerly Plada), Milupa, Nutricia, Humana and Abbott had infringed section 2 of the Competition Act by concluding an agreement restricting competition on the babies' powdered milk market. In particular this agreement governed milk for babies up to 4-6 months of age, and special milks (for allergic babies, for example).
The Authority also declared the agreement to be particularly serious because of the consumers' specific state of need of these products, and accordingly imposed fines totalling 6 billion lire. The Star company, against which the investigation had begun, was found not to have been a party to this agreement.
The cartel, which the Authority immediately ordered to be dissolved, was created to coordinate their commercial distribution policies by making pharmacies their main distribution channel and denying supermarkets the opportunity to sell these kinds of powdered milk.
On the strength of this agreement, for several years these companies had been able to charge Italian consumers higher prices than those which the same companies charged consumers in other European countries for newborn babies' milk. A comprehensive survey of non-Italian markets showed that the same products were two and even three times more expensive in Italy than they were abroad. These prices were guaranteed by the standard practice adopted by pharmacies to charge consumers the manufacturers' recommended retail prices.
Rome, 16 March 2000