AGCM

PRESS RELEASE

Investigation and inspections by Competition Authority regarding alleged
violation by Eurospin of article 62 of Decree Law no. 1 of 2012 in the food market

The Italian Competition Authority has launched its first investigation concerning commercial relations between operators in the agri-food chain, accusing Eurospin Italia, the holding company of the leading group in the domestic discount retail market, of a violation of article 62 of Decree Law no. 1 of 2012, the so-called Liberalisation Decree, and provisions in its implementing decree. These regulations, on the basis of which a new function has been assigned to the Competition Authority, prohibit – if an imbalance in terms of commercial strength exists between parties in a food supply relationship – the stronger contracting party from imposing unfair conditions on the counterparty.

In its notice initiating the investigation, the Competition Authority deemed that the Eurospin Group’s leading position in the large-scale discount retail channel (by number of outlets, turnover and customer loyalty) enables the holding company, Eurospin Italia, to exert strong commercial pressure on agricultural and food producers, the weaker parties in the relationship, during negotiation, conclusion and performance of supply contracts.

The investigation which has just commenced in particular regards alleged conduct on the part of Eurospin Italia consisting in having imposed upon its suppliers the half-yearly payment of two unjustifiably large sums which do not correspond to any service provided to them by the group. Competition Authority staff, in collaboration with the Finance Police, have conducted inspections at the company’s head offices. The investigation will conclude at the end of March 2015.

Rome, 04 December 2014