The Italian Competition Authority opens a II-Phase enquiry into a multi-utility merger
In the Case C-12125 2i Reti Gas/Nedgia the Italian Competition Authority (ICA) has opened a Second Phase investigation into the proposed acquisition of Nedgia Spa (Nedgia) by 2i Reti Gas Spa (2RG). The merging parties operates in the market for the services for distribution of natural gas and also supply drinkable water for a few municipalities. Though the notified merger potentially affects several relevant product markets, the ICA had only concerns on the competition impact of the transaction in the market for the provision of services for the distribution of natural gas. Considering that under the Italian legal system this activity is subject to a legal monopoly regime, the ICA explained that competition in this market is ‘ competition for the market ’. Indeed, the only form of competition in such markets is bidding for the award for the concession contract for the provision of distribution service of nature gas for the territorial ambits (ATEM) determined in the tender notic