AGCM

The Competition Authority has commenced an investigation into an alleged cartel on the cement and concrete market

At its meeting on 3 April 2003 the Competition Authority resolved to open an investigation into 11 concrete suppliers and cement producers and sellers, to ascertain whether an anti-competitive agreement had been established between them.

Section 2 of the Competition Act (law 287/90) prohibits companies from concluding agreements or colluding in practices intended or having the effect of impeding, restricting or substantially interfering with competition on the domestic market or on a substantial part of it.

From the evidence at its disposal, the Authority considers that an agreement may have been concluded under which the Ambrosiana, Calcestruzzi, Cave Rocca, Cemencal, Colabeton, CosmoCal, Holcim Calcestruzzi, Holcim Cementi, Monteverde, Monvil and Unical companies may have agreed to share the supply of concrete, at least within the geographical area of Lombardy, in order to ensure that their market shares remain unchanged, or at least under their control, by setting prices, laying down the contractual terms and conditions for their sales, sharing the final customers between them, and setting up a system to exchange sensitive information. The documentary evidence available seems to show that such conduct indicates that the parties concerned are coordinating their activities, and that this conduct also includes the upstream sector of cement production and sales in Northern Italy.

Such conduct would be inconsistent with normal market dynamics based on true competition, and the Authority has therefore resolved to commence investigations into these companies, it being understood that any such agreements could impede competition on the concrete supply market and, presumably, on the upstream cement manufacture and sales markets too, in an area of Northern Italy covering several Provinces.

The investigation will be completed by 30 July 2004.

Rome, 9 April 2003