AGCM

PRESS RELEASE

Antitrust sanctions Italgas for abuse of dominant position in the gas distribution market. Over 4 million euros in fines

Reversing its initial refusals, the firm belatedly provided the Municipalities of Todi and Rome with information that was essential for preparing contract notices for tendering the service. During its calculation of the fine, the College took into account the cooperative behavior of the firm, which furnished information to the Rome offices while the proceedings were under way.

Italgas fined 4,671,447 euros for abuse of dominant position. This is the ruling of the Antitrust College, which determined that Italgas had obstructed competition through its initial refusal to provide and subsequent lateness in providing the Municipalities of Todi and Roma with information required to prepare contract notices for the tendering of gas distribution services. The reconstruction by the Authority's offices found that Italgas had acted to exclude potential competitors from competing for the tender. The data withheld by Italgas was needed by local authorities to prepare competitive contract notices, on the one hand, and by competitors to formulate competitive offers and participate in the tenders, on the other.

According to the Authority, an effective par condicio needs to exist for a tender to be competitive, with all participants enjoying access to the same information. Italgas, in its capacity as exiting manager, sought to preserve its privileged access to the information inherent to its legal monopoly, thus enabling it to formulate the most competitive offer by exploiting the informational asymmetry of its competitors.

For the Rome and Todi tenders, Italgas's behavior resulted in serious damage to the competition as the Municipalities in question were forced to postpone the calling of the tenders. In Todi's case, at least, in accordance with the rules for blocked tenders that were subsequently activated, the delay ensured that the firm would enjoy another term of direct assignment. By preventing the service from being assigned under the more favorable conditions promised by the tender mechanism, the firm also caused damage to final clients of the gas distribution service.

During its calculation of the fine, the Antitrust College also took into account the cooperative behavior of the firm, which, although belatedly, implemented the commitment assumed before the College on 11 October 2011 by communicating the rate schedules to the Municipality of Todi on 21 October 2011 and expressing its willingness to communicate them to the Municipality of Rome.

Rome, 20 December 2011