PRESS RELEASE

CONSTRUCTION PRODUCTS:  ANTITRUST AUTHORITY FINES SAINT-GOBAIN PPC ITALIA S.P.A. IN THE PLASTERBOARD MARKET

Fine of 2,165,787 euros for abuse of dominant position. By virtue of its considerable market power in the plasterboard production business, the company applied a complex strategy to block the entry of a new competitor.

In its meeting of 30th June 2010, the Autorità Garante della Concorrenza e del Mercato ruled that Saint Gobain Ppc Italia S.p.A. had engaged in abusive behavior in order to exclude or at least hinder and delay Fassa S.p.A.'s entry into the plasterboard market.
In light of the seriousness and duration of the abusive conduct, which dates back to 2005, the Antitrust Authority sanctioned Saint-Gobain (already Bpb Italia S.p.A.) with a 2,165,787 euro fine.
The Antitrust Authority's investigation determined that Saint-Gobain Ppc Italia had sought to impede the opening of a new plasterboard production facility by Fassa, the interested party, in Calliano (Monferrato). In a market characterized by very few operators, Saint-Gobain Ppc Italia applied a strategy that was designed to hinder Fassa's access to the gypsum reserves needed to produce and market plasterboard.
More specifically, the Antitrust Authority confirmed that Saint-Gobain Ppc Italia had interfered with Fassa's  contractual negotiations with gypsum deposit owners, both directly and by persuading farmers with land preemption rights to resist via legal channels.
Saint-Gobain Ppc Italia subsequently launched several initiatives that were designed to mitigate the current impact of these behaviors. These initiatives by Saint-Gobain Ppc Italia were deemed sufficient to affect the size of the fine, which was consequently reduced.

Rome – 12th July 2010