PRESS RELEASE

ONLINE DATABASES: PENALTIES OF ANTITRUST FOR OVER EURO 600 THOUSAND TO THREE COMPANIES FOR IMPROPER COMMERCIAL PRACTISES AGAINST OF MICRO-ENTERPRISES

In two separate proceedings sanctions regarded companies DAD and CBR (respectively with € 500,000 and € 50,000) and the company Kuadra (€ 100,000). In violation of the consumer code, they requested from micro-enterprises payment of a subscription service, which was not required, consisting of the publication with fee of advertisements in an online database.

Penalties of more than 600 thousand euro to three companies that used the business data of the Italian micro-enterprises and, by sending pre-compiled payment slips or the enrolment in computerised databases aiming at sending commercial communications, determined the unaware subscription to a service of paid advertisements. This has been the decision of the Competition Authority at the conclusion of two distinct procedures in the field of unfair commercial practises.

DAD AND CBR. The Authority fined with € 500,000 DAD company, based in Hamburg and with € 50,000 the CBR company, with registered office in Prague, by attributing them conducts connected to a single unfair commercial practise. DAD in fact has put on its online database "Italian Registry in Internet" the business data of Italian companies, including micro-enterprises, in a unilateral and not required manner; then it sends to businesses a proposal for a subscription to a service of paid advertisements, in ways that can unduly influence the economic decisions of the enterprises themselves. Once the form received has been completed and re-submitted, businesses undergo a long chain of payment reminders, with gradually more pressing and peremptory tones. Among other things, the bill for payment of the first annual subscription is sent by DAD only after the expiration of the period granted to micro-enterprises in order to exercise the right of withdrawal. In the second phase the CBR company will be active, which shall make settlement proposals on behalf of DAD the so called "for full and final settlement," with peremptory and menacing tones. The requested figures increase from one reminder to the other, thereby increasing the pressure on micro-enterprises concerned.

KUADRA. The commercial practise implemented by the Kuadra company (under sanctions of € 100,000), while relying on a similar mechanism of collection of business data of micro-enterprise for the purpose of reminding a subscription to their services, however, is directed to the newly created companies. Kuadra sends mail payment slips to the companies recently entered in the Companies Register and not yet fully informed about the character, including that of economic nature, that assume the financial obligations. Kuadra directs the aforesaid report to this type of enterprises also containing a statement about the offered services, designed to unduly influence the decision-making of micro-enterprises. The latter, convinced of being in front of a compulsory payment, pay expeditiously the slip enclosed to the communication of Kuadra. In the course of the investigation obstacles were also found impeding the right of withdrawal.

Rome, 19 May 2014