EMILCARTA/AGRIFOOD MACHINERY
PRESS RELEASE
PRESS RELEASE
THE COMPETITION AUTHORITY HAS IMPOSED A FINE OF EUR95 MILLION ON THE TETRA PAK GROUP FOR FAILURE TO COMPLY WITH THE MERGER PROHIBITION
At its meeting on 29 July 2004 the Competition Authority resolved to fine Tetra Pak International SA EUR95 million for having failed to comply with the acquisition prohibition issued on 6 August 1993.
In that measure the Authority had prohibited the Tetra Pak Group from proceeding with the acquisition of Italpak since the operation was likely to strengthen the dominant position of the Tetra Pak Group, because it would have had a lasting restrictive effect on competition on the aseptic and non-aseptic packaging markets for liquids and semi-liquids for human consumption, on which Tetra Pak already held a far greater dominant position than its competitors.
During the course of the investigation that began on 15 April 2004, the Authority ascertained that despite the prohibition on proceeding with the acquisition of Italpack, and even though Italpack had been formally acquired by Eaglepack Italia in 1995, the Tetra Pak Group had in reality managed Italpack as if it were a company belonging to its group. Facts had emerged to demonstrate that Tetra Pak was the de facto controlling company, including long-term contracts, the substantially exclusive commercial relationship with Tetra Pak and the influence of Tetra Pak in the choice of Italpack's management.
The Authority found Tetra Pak International SA liable for failure to comply with the ban on acquiring control of Italpack considering the role it played on the relevant markets, performing the typical functions of a Group holding company, such as the strategic management and control of the activities of the Tetra Pak Group in Europe.
Considering that the breach of the ban on the acquisition by exercising de facto control over Italpack, had had the anticompetitive effects that the Authority had raised in its 1993 prohibition order, and considering the particularly long period of time that the breach had continued, the Authority decided to fine Tetra Pak International a total of EUR95 million.
Rome, 10 August 2004