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DISINFECTANT PRODUCTS


PRESS RELEASE



PRESS RELEASE
THE COMPETITION AUTHORITY HAS BEGUN AN INVESTIGATION INTO TENDERS FOR THE SUPPLY OF DISINFECTANTS TO HEALTH BOARDS AND HOSPITALS


At its meeting on 4 November 2004, the Competition Authority resolved to commence investigations pursuant to section 14 of the Competition Act, into the following companies: Viatris Spa, Astrazeneca Spa, Bergamon Srl, B. Braun Milano Spa, Esoform Spa - Laboratorio Chimico Farmaceutico, Farmec Srl, Germo Spa, International Medical Service Srl, Società Italo Britannica L. Manetti -  H. Roberts & C. Spa, Pierrel Farmaceutici Spa, Sanitas Laboratorio Chimico Farmaceutico Srl, Pan Service Società Cooperativa a r.l. and Information Hospital Service Srl.

The investigation is in response to a report from the Special Competition Protection Unit of the Italian Customs and Excise Police, and is designed to ascertain the existence of an agreement between the aforementioned companies to coordinate their bids for the supply of antiseptic and disinfectant products to Italian health boards and hospitals, specifically by jointly setting the prices that each of the bidders offers for the various batches up for tender and the sharing of the supplies.

Coordination between the companies is alleged to have been the work of service companies - Pan Service and Information Hospital Service - using a sophisticated system to collect information, which enabled them to draw up tables for sharing out the market covering all the Italian regions for the preparation of bids for the various tenders.

Such conduct would appear to be potentially likely to damage trade between the member states, in violation of article 81 (1) of the EC Treaty because by its nature it would have the effect of consolidating the compartmentalisation of the markets at the national level, thereby hampering the economic integration which the Treaty is intended to pursue.

The investigation is expected to be completed by 18 November 2005.

Rome, 17 November 2004