Stampa

DISTRIBUTION OF FOOD AND AGRICULTURAL PRODUCTS


PRESS RELEASE



PRESS RELEASE

ANTITRUST OPENS INQUIRY INTO DISTRIBUTION OF FOOD AND AGRICULTURAL PRODUCTS



The Italian Competition Authority, at its meeting of 1 June 2005, decided to initiate a survey of the distribution sector for food and agricultural goods.

The Authority observes that the considerable and repeated increases in consumer prices for many food products over the last few years may be indicative of certain critical factors in the distribution chain. It therefore proposes to analyse the different organizational approaches used in Italy for the distribution of foodstuffs, so as to identify any inefficiencies in the  industrial organization of this sector, or the presence of any conditions calculated to weaken competitive pressures among operators in the different phases of distribution; such conditions may markedly increase the cost of distribution services, to the serious detriment of consumers and businesses.

In particular, the analysis will cover operators in modern distribution channels, as well as those in traditional retailing: the former operate by way of chains of large-scale outlets offering a wide range of goods and services and, in their dealings with producers, directly handle practically all the activities needed to make the finished product available to the end-user; on the other hand, operators in traditional retailing rely on very small and widely dispersed stores, while their relations with the producers of foodstuffs are indirect, in that various intermediaries act as wholesale distributors.

In addition, the examination will cover the dynamics of competition in retail distribution, which is also conditioned by extensive regulation deriving in large measure from Regional laws and regulations, as well as administrative rules stipulated by local authorities.


Rome, 1 June 2005