The Italian Competition Authority, at its meeting on 19 October 2005, decided to send an opinion to the House and to the Government recommending the elimination from decree law no. 182/2005 of the obligation for stores to reserve shelf-space for regional food products. This regulation, introduced by an amendment approved on 12 October by the 13th House Agriculture Commission, stipulates that the Regions fix a minimum percentage of space in large stores to be dedicated exclusively to the sale of Regional agricultural and processed food products. The percentage is provisionally set at 20 per cent.
In the view of the Authority, which has sent its opinion to the President of the House of Representatives, to the President of the 13th House Agriculture Commission, to the Minister of Agriculture and Forests and to the Minister of Industry, the provision is in clear contradiction of national and EU competition principles, being liable to produce severe distortions in the dynamics of competition both in the food and agriculture distribution chain as well as in the upstream sectors involved in producing those goods.
According to the Antitrust Authority, the introduction of stringent curbs on the freedom of large supermarket businesses in pursuing their purchasing policies will lead to a reduction in levels of competition between companies in the distribution sector since their room for manoeuvre on this important competitive variable will be reduced. Furthermore, there would be a loss of efficiency with serious repercussions on prices and the range of products available in stores.
In the agricultural and food sectors, too, the amendment risks being counterproductive. The assurance of a market opening may represent a disincentive to pursue all those business improvements, such as economies of scale in production and distribution, cost reductions, quality control etc., which are the only means for Regional producers to make real gains in efficiency and competitiveness. This guaranteed sales channel for local producers is also seen by the Authority as an unjustified discrimination against the producers of other Regions, whether Italian or foreign, who may have already invested in improving their efficiency and competitive ability and who may find possible market openings for their products closed off by law.

Rome, 19 October 2005