AGCM

The Italian Competition Authority, at its meeting held on 18 January 2017, decided to accept the commitments proposed by the company Net Service SpA, making them binding. The preliminary investigation started on 11 May 2016 with respect to that company thus ended. It aimed at verifying possible conducts affecting competition as regards the behaviours in the downstream market for software applications for the professionals in the legal sector, working in the framework of the on-line civil trial (Processo civile telematico, PCT) and was concluded by virtue of the leading position held in the upstream market of basic computer systems for the development and operation of the PCT, where Net Service operates exclusively by virtue of the assignments obtained, which are being renewed over time and still in place.
In this context, following a complaint to the Authority, Net Service would have been using upgrades to the technical specifications of systems for PCT functioning, in advance compared to the other operators on the downstream market for application software. Such a situation would imply a competitive advantage of Net Service SpA in the supply of management software in the downstream market.
In the course of the preliminary investigation, Net Service submitted a proposal of commitments pursuant to Article 14-ter paragraph 1 of Law no. 287/1990 consisting of a set of three remedies. Commitment n° 1. Net Service will carry out a business reorganisation that involves a form of vertical separation, both functional and physical. More specifically, Net Service will be organised into two separate business areas: i) Net Service PA (Public Administration) Area; ii) Net Service Market Area. The first business area will deal with the performance of activities related to computer systems. The second area will only carry out commercial activities relating to open competition markets (application software for the PCT). Commitment n° 2. Net Service will create a virtual community (PCT blog), where all the active players in the PCT can talk to each other and with the Net Service PA Area. This aims at allowing the dialectical exchange among all the operators that provide PCT-related service; the Ministry of Justice's prerogatives in relation to the communication of technical specifications and the provision of assistance to software producers shall remain unaffected. Commitment n° 3. Net Service will provide reporting documents on the activities carried out by the blog, illustrating any potential critical issue found in the market, for the sake of transparency.
Following the market test, the ICA considered that the proposal of commitments filed by the Party features characteristics capable of overcoming the competition concerns, by scaling down the advantages Net Service would benefit of as regards as information systems, in the downstream market for the production, distribution and sale of application software for the PCT.

Rome, 27 January 2017