AGCM

The Italian Competition Authority has sanctioned Unilever Italy Mkt. Operations S.r.l. with a fine of over 60 million euro for having violated article 102 of the Treaty on the Functioning of the European Union, by putting in place an abuse of an exclusionary nature to hinder the growth of competitors in the market of individually-wrapped impulse-buy ice cream, in which the Italian company of the Anglo-Dutch multinational holds a dominant position, mainly through the sale of "Algida" branded ice creams.

During the preliminary investigation, which originated from a report from a small ice lolly manufacturer "La Bomba", mainly operating in beach resort establishments, the Authority ascertained Unilever’s adoption of an exclusionary strategy to the detriment of competitors (both small and large), consisting of extensive use of exclusive product clauses and a series of further loyalty conditions, commercial policy instruments and overall conduct aimed at maintaining, formally or substantively, the exclusivity of supplies to the businesses that make up their customer base, thus hindering competition on the market.

In the market of single-wrapped ice cream consumed away from home, and therefore related to a product typically destined for so-called "impulse" consumption, the sales policies adopted in relation to the businesses take on a decisive importance in the orientation of end consumer choices, strongly conditioned by the offer available in the place where the consumption impulse arises.

Therefore, the abusive conduct sanctioned, forcing or encouraging Unilever's customers to keep a single brand of ice cream on offer, has caused a substantial prejudice to the freedom of choice of the end consumer, limiting their possibility of finding ice creams offered by competitors which, due to their quality and taste, could have been preferred over some Algida ice creams.

Rome, 6 December 2017