Corporate separations

Some companies provide essential services under exclusive rights (SGEI) or operate under a statutory monopoly. Because of their position, there is a risk they could use their market power unfairly if they expand into other areas of business.

To prevent such conduct, Italian law requires a system of corporate separation. When these companies wish to operate in markets other than those where they enjoy exclusive rights, they must set up a separate legal entity and notify the Italian Competition Authority in advance.

This obligation is set out in Article 8(2-bis) and following of Law 287/1990, as introduced by Article 11 of Law 57/2001.