competitionlaw

The Italian Competition Authority (ICA) has recently opened a second phase investigation under Article 16 of the Act 287/1990 into the proposed acquisition of a low cost airline, Wind Jet, by the legacy carrier Alitalia ( Case C11608 ) . The ICA concerns on the competition impact of the transaction are grounded on the high post-merger market shares of the merging parties on many routes between mainland Italy and Sicily. In particular, the merged carrier would have a 100% market shares on the Catania-Bologna, Catania-Pisa, Catania-Venezia, Palermo-Linate and Palermo-Torino routes. It would have 60% and higher market shares on the Catania-Linate, Catania-Malpensa, Catania-Roma, Palermo-Milano and Palermo-Rome routes. It can be said that the post-merger position of the merging parties on the routes connecting airports other than the Milan airport of Linate (LIN) should not create any competition problems. The parties’ market share, though considerably high, are contestable by new o...

By a decision made on 30 May 2012 ( Case C11613, CIN/Tiirrenia di Navigazione ), the Italian Competition Authority (ICA) has opened a second phase investigation under Article 16 of the Act 287/1990 into the proposed acquisition of ferry service branch of the debt-stricken publicly owned ferry operator Tirrenia by Compagnia Italiana di Navigazione (CIN). CIN is a company expressly incorporated to execute the acquisition. Following the implementation of the transaction,   Moby, a major competitor of Tirrenia, and L19 an equity fund, will have the joint control of CIN, and therefore of Tirrenia. The Tirrenia branch to be bought is that for the provision of passenger and freight ferry services from/to mainland and Sicily, Sardinia and minor islands. The branch includes the vessels necessary to operate the links and, above all, but the profitable public service obligation contract that, following the closing of the transaction, CIN will sign with the Italian Government. The contrac...