API ANONIMA PETROLI ITALIANA-ENI
PRESS RELEASE
PRESS RELEASE
ANTITRUST OPENS INVESTIGATION INTO API, ENI AND IP OVER POSSIBILITY OF RESTRICTIVE PRACTICES
At its meeting of 30 June 2005, the Italian Competition Authority opened an inquiry over a possibly anti-competitive agreement involving the companies API - Anonima Petroli Italiana S.p.A., ENI S.p.A., and IP - Italiana Petroli S.p.A. These proceedings, which must be completed by 30 November next, result from the announcement by the companies in question that IP was to be sold by ENI to API. The Authority considers that this operation (involving the purchase of 90% of IP’s capital), while not representing a concentration, may nevertheless be the result of an agreement. Specifically, the set of agreements amongst the parties (API, ENI and IP) which accompany the sale have the potential to prejudice trade between Member States and would seem to be in breach of Article 81, paragraph 1, of the EC Treaty.
In particular, in the Authority’s view, a common shareholding in IP by two companies like ENI and API which are presently competitors with no links of any sort, must be considered an incentive, or at least a potential incentive, to a further increase in parallel conduct and information transparency between them, with the possible consequence of coordination amongst all the parties involved in the operation.
The Authority observed that the contract for purchase of IP by API is accompanied by further provisions giving the minority shareholder (ENI) veto power over a wide range of decisions having to do with the management of IP.
Of particular importance are the Operational Agreements which stipulate thorough, frequent and detailed planning activities and information exchanges between ENI and API with regard to the management of IP’s network.
Rome, 6 July 2005