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ANTITRUST AUTHORITY LAUNCHES INVESTIGATION INTO ORDER OF VETERINARIANS OVER ALLEGED ANTI-COMPETITIVE FIXING OF MINIMUM FEES


PRESS RELEASE



PRESS RELEASE


Antitrust Authority launches investigation into Order of Veterinarians over alleged anti-competitive fixing of minimum fees



The Italian Competition Authority, at its meeting on 24 May 2006, decided to open an investigation into the National Federation of Italian Veterinary Orders and the Order of Veterinary Surgeons of the Province of Turin to ascertain the existence or otherwise of an anti-competitive arrangement.
The investigation stems from a complaint received from a veterinarian registered with the Order of the Province of Turin who was the subject of three disciplinary proceedings resulting in her suspension from the profession for three months in 1996 and for six months in 1999 and 2004. The complainant is the medical director of a veterinary surgery of a non-profit association. The Statute of that association provides, amongst other things, for the opening of veterinary clinics, the sale of food and non-food products to members and the organization of any and all initiatives to assist the owners of animals in taking the best possible care of them. Amongst the advertised activities is the availability of veterinary attention by payment of a low "ticket" price according to the type of service required.
The veterinarian was accused by the Order of violating the regulations contained in the code of conduct approved by the National Council on the subject of compulsory minimum tariffs and of medical advertising.
In the Authority's view, the provisions contained in the veterinary code of conduct restrict the autonomy of veterinarians both in fixing the prices of their professional services and in advertising those services. Specifically, the minimum tariffs adopted by the Order of Veterinarians in the Province of Turin, which are obligatory according to the code of conduct, aim to arrive at uniform pricing for professional services by veterinarians. The regulations therefore  prevent users from benefiting from services at lower prices than those fixed, and penalize registered practitioners who do not apply the established tariffs. In the Authority's view, this is conduct harmful to competition because the professional is not allowed to manage the most important variable in his or her professional activity which is, in fact, the price.
The limitations on advertising, too, even if adopted in accordance with a national law, undermine competition amongst professionals by inhibiting the dissemination of information which would allow users of the services to make an informed choice.  
On this point, the Authority draws attention to the fact that where the conduct of a business which contravenes Articles 81 and 82 of the EC Treaty is imposed or encouraged by a national law that legitimises or  reinforces its effects, the national competition authority is obliged to override that national law.
The proceeding must be concluded by 30 April 2007.


Rome, 1 June 2006