INVESTIGATION LAUNCHED INTO PASTA MANUFACTURERS' ASSOCIATION AND THE NATIONAL ASSOCIATION OF SMALL-MEDIUM FOOD COMPANIES
PRESS RELEASE
PRESS RELEASE
PASTA: ANTITRUST AUTHORITY OPENS INVESTIGATION INTO POSSIBLE ANTI-COMPETITIVE ARRANGEMENTS ON THE PART OF UNIONE INDUSTRIALE PASTAI ITALIANI AND UNIONE NAZIONALE DELLA PICCOLA E MEDIA INDUSTRIA ALIMENTARE
These associations may have given instructions for homogeneous price increases throughout the country
The Italian Competition Authority, at its meeting on 10 October 2007, decided to launch investigations into the Unione Industriale Pastai Italiani (UNIPI, or National Association of Italian Pasta Manufacturers) and UnionAlimentare (Food Manufacturers' Association) over two possible anti-competitive arrangements in the markets for the manufacture and sale of pasta.
The investigation must determine whether the instructions regarding price increases to apply to pasta beginning in September, provided by the two associations, caused competition to be restricted.
In the Authority's view, the data on price increases to be put into practice may have constituted a point of reference for increases in the end product, inducing individual manufacturers to adopt a uniform strategy rather than competing on price in the face of the increasing cost of wheat and consequently of flour.
The investigation, which must be completed by 30 November 2008, was launched following a complaint presented by Federconsumatori Puglia (a Consumers’ Association of Puglia Region). The complaint cited a meeting in Rome of approximately 50 of the 160 companies belonging to UNIPI and representing 85% of overall production in this industry; from that meeting the decision to increase the price of pasta is said to have emerged.
In the course of their pre-investigation work, the Authority's offices found analogous indications by UnionAlimentare based on declarations made by its President.
The two associations were notified today of the measures during the course of inspections carried out by Authority personnel assisted by the Guardia di Finanza's (Customs and Excise Police) Special Team for the Protection of Markets.
Rome, 23 October 2007