ANTITRUST AUTHORITY LEVIES 31 MILLION EUROS IN FINES ON EIGHT COMPANIES FOR ANTI-COMPETITIVE CONDUCT IN THE MANUFACTURE OF PARTICLEBOARD. FIRST EVER APPLICATION OF THE CLEMENCY RULES

The new law guaranteeing exemption from fines for companies that collaborate with the Antitrust Authority in unearthing cartels has been applied for the first time. At its meeting on 17 May 2007, the Italian Competition Authority decided not to fine the Trombini Group, a manufacturer of wood composite panels, on account of its decisive contribution to the discovery of an arrangement among companies in this industry. On the other hand, the Authority imposed fines totalling over 31 million euros on another eight companies.

The Authority charged the four companies in the Saviola group (Sacic Legno S.r.l., Sia – Società Industria Agglomerati S.r.l., Sit – Società Industria Truciolari S.r.l., Sama S.r.l.), the Gruppo Frati S.p.A., SAIB - Società Agglomerati Industriali Bosi S.p.A., Fantoni S.p.A. and Xilopan S.p.A. with an arrangement whereby they fixed production quotas, parcelled out customers and coordinated prices and other conditions of sale. The parties, representing over 80% of the market, also orchestrated their purchasing policies for raw materials for the manufacture of plain and treated particleboard. This conduct, lasting from January 2004 until November 2005, affected a market that, before the cartel was set up, had been characterized by a high degree of variability in end-user prices.

The investigation revealed that the parties met at frequent intervals, weekly or twice weekly, in order to agree on changes to list prices and conditions of sale according to the size of purchase orders, the geographic location of the customer and the payment option chosen by the customer, but also in order to maintain the market position of each manufacturer, as fixed in an agreement, by limiting production and sharing out customers. The Authority determined that these companies agreed to maintain an artificially balanced market, congealing market quotas and maximising profits by fixing prices and other conditions of sale for plain and treated particleboard. The stability of the arrangement was ensured through the explicit stipulation of reprisals consisting of the constant and credible threat of a price war.  

The Trombini Group also participated in this arrangement but the Authority did not impose a fine on it because of the decisive assistance it provided, being the first spontaneously to supply decisive information and documentary proof of the existence of the arrangement, even before the proceeding was set up. The Group's representatives remained available to the Authority even after the investigation was under way, providing all relevant information in their possession and responding in a timely manner to every request that could contribute to the determination of the relevant facts. The Trombini Group's decisive contribution was the identification of the participating companies and their representatives, and the specification of dates and places of the meetings and the subjects discussed.

During the course of proceedings, the other companies also collaborated with the Authority and their behaviour was taken into account: this led to a reduction of 30% in the base amount of the fine.

In determining the fines, the Authority took into account not only the particularly serious nature of the offence, but also the varying contributions made by the companies and the economic situation of the national market for the manufacture and sale of particleboard in which the arrangement was set up.

The following table summarizes the fines imposed: