PRESS RELEASE

PRESIDENT PITRUZZELLA’S REPORT TO THE PARLIAMENT: “MORE INNOVATION AND COMPETITION LESS SOCIAL INEQUALITIES”

“Innovation and competition need to be increased so as to reduce social inequalities.” The ICA’s president Giovanni Pitruzzella, in presenting the Authority’s Annual Report to the Parliament in Sala Koch at the Senate, launched his proposal for facing the “big transformation” and overcoming the economic crisis that is gripping Italy and Europe.

The Italian Competition Authority’s president reminded that “all of the most important moments of progress have left behind an aftermath of inequalities.” However, according to his opinion, “the digital revolution’s disruptive effects on the traditional markets are even greater. Therefore, it is possible to notice an increase in conflicts between who draws advantage from innovation and who remains behind.”

In this context, Pitruzzella highlighted that “Internet is not the realm of harmony and freedom, as suggested by a certain technological millenarianism, but the ground of new conflicts of the Twenty-first century.” Therefore, “for those who believe that one of the causes of the crisis in 2008 lies in the excess of inequalities, the hope is for the ICA to strengthen its action.”

As regards the Internet, the ICA carried out investigations into restrictive clauses imposed by platforms active in supplying online hotel booking services (Booking and Expedia). Moreover, it intervened to spur the removal of regulatory obstacles hindering the new “sharing economy.”

In fact, the ICA’s president emphasized that “one of the most important aspects of digital economy is e-commerce,” highlighting the positive correlation with innovation and growth. “Italy is still behind compared to many European Countries, but during the past year more and more companies and consumers have made use of e-commerce.” Therefore, in order to protect consumers, the ICA has been committed in fighting against unfair practices in the e-commerce sector following three main directions: interrupting the sale of companies that do not deliver the goods purchased and do not refund the amounts paid; blocking access to websites that sell counterfeit products; guaranteeing compliance with the obligation to provide pre-contractual information and an adequate protection of post-sale rights.

Always in his intervention at the Senate, president Pitruzzella provided a detailed description of the Authority’s activity carried out in 2015 and during the first five months of this year. On the basis of its enforcement powers attributed by law, the ICA imposed fines for a total amount of 433 million Euros aimed at competition protection, while the fines imposed for consumer protection amounted to 71 million Euros. In the period January 2014 - June 2015, the fines imposed amounted respectively to 266 and 30 million Euros, thus increasing by 63% and 137%.

The proceedings closed for anti-competitive agreements amounted to 19, while 4 were closed for abuse of dominant position, and 9 for mergers. Among these, the Authority dealt with the merger project of the RaiWay Towers by EI Towers (withdrawn by the parties after the communication of the results of the ICA’s investigations), the Rizzoli-Mondadori merger, the RTI/Finelco operation in the radio sector, and the merger between Seat Pagine Gialle and Libero.

The proceedings ascertaining anti-competitive conducts and imposing fines amounted to 18, while 5 were closed with the parties’ commitments. In one case, the proceedings were closed with the ascertainment of the groundlessness of the illicit conduct. The average duration of the proceedings results to be a year and a half, considerably less compared to that of the proceedings before the European Commission.

Moreover, the Authority carried out various proceedings against bid rigging, and imposed a 114 million Euro fine on a cartel in Consip’s call for tenders (of about one billion Euros) for the appointment of cleaning services in schools.

During the period of reference, the Authority concluded five preliminary investigations. Among those of particular relevance: the investigation into the waste market, the one into vaccines for human use and that into local public transport.

The ICA also provided many opinions to the public administrations aimed at removing anti-competitive behaviours. In 60% of the cases, the administrations complied with the ICA’s opinion. In 10 cases, the anti-competitive conduct was continued, thus requiring the TAR’s intervention. The other opinions issued amounted to 87, sometimes upon the public administrations’ request. Of these, 16 concerned Consip and 18 the Presidency of the Council with reference to controls on regional laws.

As regards the ICA’s advocacy activity, 21 reports were submitted to political and administrative bodies with the aim to remove anti-competitive regulations. As regards the so-called “residual competences,” the proceedings against conflicts of interest amounted to 51, while those that attributed or renewed Legality Rating amounted to 1,843.

“It is a pleasure to notice that – president Pitruzzella concluded – the Madia reform is in full syntony with many of the ICA’s suggestions, giving life with legislative decrees to one of the most important processes of administrative reform in the Italian history. Once approval has been given, it will contribute significantly to the Country’s competitiveness. And although the procedure is being carried out quickly, the quality of the results is not being sacrificed owing to the commitment in writing the texts, to the Council of State’s important contribution in promptly adopting opinions, and to the richness of observations aimed at perfecting the pro-competitive structure of the decrees.”

Rome, 15 June 2016