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RETAILING: ANTITRUST AUTHORITY SAYS REGIONS HOLDING BACK LIBERALIZATION


PRESS RELEASE



PRESS RELEASE


RETAILING: ANTITRUST AUTHORITY SAYS REGIONS ARE HOLDING BACK LIBERALIZATION
Restrictive interpretation excludes bars and restaurants

Some Regions are interpreting the Bersani law of July 2006 in a restrictive manner, excluding the opening of bars and restaurants from liberalization measures. This is the message of a report by the Italian Competition Authority which was approved on 7 June 2007. In the Authority's view, the Regions' orientation has also been supported by the contents of a ministerial resolution of 10 October 2006.

In particular, the Regions of Veneto and Sicily (in the latter case for the opening of businesses by opticians as well) have circumscribed the application of the liberalizing principles introduced in Article 3, Paragraph 1 of the Bersani law so as to retain their restrictive local planning mechanisms regarding a number of retail sectors, after having submitted the question to the ministry.

The resolution issued to respond to some Regions' doubts as to interpretation seems to indicate the setting of numerical parameters for the issuing of food and drink licences is not covered by Article 3, Paragraph 1 d) of the Bersani law.

In its report the Authority reiterates that, from a competition standpoint, the exclusion of establishments serving food and drink, such as bars and restaurants, from application of the liberalization principles introduced by the Bersani law can in no way be justified by requirements of the public interest and represents a regulatory obstacle to the correct functioning of the market. Maintaining planning mechanisms for bars and restaurants based on predetermined quantitative limits encourages the perpetuation of existing arrangements, and represents an artificial barrier to the development of supply.

In the Authority's view, moreover, it is not acceptable that such an interpretation be allowed to limit the scope of a national law. Hence, the Authority recommends a timely intervention by the Industry Minister in support of a reading of the provision that is consistent with the letter and spirit of the Bersani law.

Finally, the Authority requests that the Regions review regulations regarding food and drink businesses and those of opticians in the light of the principles of competition set out in Law no. 287/90 and the principles of liberalization introduced by the Bersani law.

Rome, 14 June 2007