THE MARKET FOR PLASTERBOARD
PRESS RELEASE
PRESS RELEASE
BUILDING INDUSTRY: ANTITRUST AUTHORITY OPENS INVESTIGATION INTO SAINT-GOBAIN PPC ITALIA OVER ALLEGED ABUSE OF A DOMINANT POSITION IN THE MARKET FOR PLASTERBOARD
Aim is to investigate whether the company hindered the entry of a new competitor
The Italian Competition Authority, at its meeting on 5 March 2009, decided to open an investigation into whether Saint-Gobain Ppc Italia, the main operator in the plasterboard market, abused its dominant position by hindering the entry of a new competitor. The company was today advised of the measure in the course of a number of inspections carried out in collaboration with the Special Units of the Guardia di Finanza (Fiscal Police).
The investigation was begun following a complaint from a company which recounted the serious difficulties encountered in attempting to establish, close to gypsum mines, a plant for the production of plasterboard which would allow it begin operating in the Italian market. The complaint claims that the obstacles put in its path were the result of actions by Saint-Gobain Ppc Italia.
The investigation must establish whether the conduct complained of was part of an overall plan by Saint-Gobain Ppc Italia to prevent or at least seriously hinder the entry of a new competitor into the market. Specifically, the conduct could have artificially inflated costs for the potential competitor by cutting it off from access to an essential input for the production of plasterboard (the raw material gypsum), thus using its dominant position to alter the competitive dynamic and avoid a correct competitive confrontation.
The investigation must be completed by 31 March 2010.
Rome, 10 March 2009