competitionlaw

The proposed Bolton acquisition of Simmenthal from Kraft attracted the attention of the Italian Competition Authority (ICA). As the ICA feared that the transaction would have anticompetitive effects in the market for processed meat, it has opened a Second Phase investigation into it (CaseC11799, Bolton/Simmenthal) . The relevant markets affected by the merger are the market for the production and retail of canned meat and tripe with tomato sauce. All these markets have a similar competition structure. With a market share constantly higher than 60% over the past three years Simmenthal is the leading player in these markets and probably it also enjoys a dominant position. Bolton is the next competitor to Simmenthal , though its market shares are much lower not exceeding 20%. The ICA believed that the execution of the merger would strengthen the market power of Bolton leading to the creation or the strengthening of a dominant position for two reasons. First, due to the overlapping of...

By a decision made on 19 June 2012 ( Case C11524, UGF-Premafin) the Italian Competition Authority (ICA) has conditionally cleared the Unipol Gruppo Finanziario (UGF) acquisition of Premafin Fondiaria (Fondiaria). The notified merger would negatively affect several insurance markets giving or strengthening the UGF dominant position. To avert such negative effects the ICA conditioned the approval of the merger on the implementation of a set of stringent structural and behavioural remedies on the merging parties and on Mediobanca. Mediobanca not only controlled Assicurazioni Generali (AG), the next competitor of the merged entity, but it was also the main funder of the merging parties. The competition problems of the merger The ICA based its concerns about the competition impact of the proposed merger on the market  collectively held by the merging parties and the results of the HHI test. The ICA found that the merger would restrict competition in many non-life and life ins...

By the decision made on 28 September 2012 ( CaseI723 Barriere Stradali ) the Italian Competition Authority (ICA) fined seven undertakings, Metalmeccanica Fracasso, Industria Meccanica Varricchio, Tubosider, Car Segnaletica Stradale, San Marco, Ilva Pali Dalmine Industriale and Steam Generators for breaching Article 101 TFEU. The anticompetitive practice affected the market for motorways and road barriers. The competition infringement found in Barriere Stradali was a collusive tendering which was based on sophisticated mechanism to rotate order among colluders combined with indirect information exchange via a trade association. The anticompetitive practice had effects nationwide. It lasted from May 2003 until 2007 and the participants to it accounted for the 95% share of the relevant  market. The parties carried out a single complex anti-competitive practice the object of which was to fix prices and share markets, removing uncertainties as for the commercial policies of the pa...

Pfizer was the owner of the primary patent EP0364417 for the active ingredient of latanoprost used in the production of the glaucoma medicine Xalatan. It extended the patent protection for Xalatan in Italy until January 2012 by applying for a SPC and then for a pediatric extension on the basis of the divisional patent EP198 granted in 2002. By the decision made in the   Ratiopharm/Pfizer   case the Italian Competition Authority (ICA) condemned Pfizer for violation of Article 102 TFEU. The ICA considered that Pfizer abused its dominant position in the market for glaucoma medicines based on latanaprost by deliberately misusing patent application procedures. In doing so, Pfizer sought to extend the patent protection for Xalatan in Italy with the ultimate objective to frustrate or delay the market entry of manufacturers of generic drugs. Pfizer appealed the ICA decision to the Regional Administrative Court for Latium ( Regional Administrative Court for Latium, Pfizer v It...

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...

Following the receipt of a complaint lodged by a transport trade association, the Italian Competition Authority (ICA) has opened an investigation into an alleged abuse of manager of Rome airport of Fiumicino (FCO), Aeroporti di Roma (ADR) ( Case A442, Associazione Nazionale Fornitori Trasporti-Assofort/ADR ). The relevant market for the ICA investigation was the market for access to the facilities of exclusive or common use for carrying commercial activities at FCO. ADR had a dominant position in this market as it hold a concession for the management of the airport. At FCO Demontis Holding (DMH) carried out on behalf of Hertz the activity of renting cars to the customers had previously hired them at dedicated web sites (Advantage-rent-a-car). A shuttle bus service supplied by DMH collected customers at the air terminal and carried them to a parking lot located outside the FCO perimeter. ADR informed DMH that in providing the Advantage-rent-a-car services the latter infringed th...