The Italian Competition Authority, at its meeting on 10 October 2007, decided to begin an investigation into a possible anti-competitive arrangement on the part of the Bakers' Association of Rome and its Province.

The investigation must assess whether the distribution of a price-list indicating increases based on rises in the price of wheat had the effect of restricting competition. Specifically, the Authority questions whether the association's suggestions may have led the more than 8,000 bakers operating in the Province to adopt generalized and substantially uniform increases higher than those there would have been in the absence of the recommendations and price-list.

The investigation, which must be completed by 18 July 2008, was prompted by a complaint received from the “Altroconsumo” Association, which claimed that price increases announced for bread in the principal Italian cities may be the result of concerted conduct.

The complaint makes reference to the extraordinary general meeting of the Unione Panificatori di Roma e Provincia on 23 September 2007, at the conclusion of which there was said to have been an official announcement of the necessary price increases for bread in Rome.

Altroconsumo has also sent the Authority a price-list printed on the letterhead paper of the Unione Panificatori di Roma e Provincia indicating the recommended wholesale and retail prices. The end price indicated is €2.60/2.80 for a “rosetta” (rose-shaped roll) or €2.20/2.40 for “casereccio” (home-style) bread, while for other types of bread and baked products the recommended increases are between €0.30 and €0.50 per kg.

The Unione Panificatori di Roma e Provincia was notified of the action today during a number of inspections carried out by Authority personnel with the assistance of the Guardia di Finanza's Nucleo Speciale Tutela della Concorrenza e del Mercato.

Rome, 15 October 2007