The European Commission (EC) has accused ambient food company Conserve Italia of breaking EU anti-trust rules by running a cartel to distort competition in the canned vegetable market.
It issued a preliminary finding and a statement of objections today (5 October). If its preliminary view is confirmed, the company’s behaviour would violate EU rules that prohibit anti-competitive business practices such as collusion on prices and market sharing.
The case against Conserve Italia, which owns the Cirio tinned tomatoes and passata brand, dates back to September when the EC adopted a settlement decision against Bonduelle, Coroos and Groupe CECAB, finding the three companies participated for more than 13 years in a cartel for the supply of certain types of canned vegetables to retailers and/or foodservice companies in the European Economic Area.
The three companies admitted their involvement in the cartel and total fines of EUR31.6m (US$37.2m) were imposed.
In the context of the same investigation, the Commission opened proceedings against a fourth company, Conserve Italia. It was not covered by the September 2019 settlement decision and the investigation concerning the company has continued until now.
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The EC said it has informed Conserve Italia of its preliminary finding.
In a statement, the EC said it “has concerns that Conserve Italia may have colluded with other market participants within the EEA to fix selling prices, share markets and allocate customers for the supply of certain types of canned vegetables (under own brands or under private labels) to retailers and/or foodservice companies”.
It said that “in particular, the Commission suspects that Conserve Italia has participated in horizontal price-fixing and market sharing agreements, through which they coordinated their commercial conduct with other market participants, for several consecutive years”.
A statement of objections is a formal step in Commission investigations into suspected violations of EU rules on restrictive business practices. The Commission informs the parties concerned in writing of the objections raised against them. The parties can then examine the documents in the Commission’s investigation file, reply in writing and request an oral hearing to present their comments on the case before representatives of the Commission and national competition authorities.
If, after the parties have exercised their rights of defence, the Commission concludes there is sufficient evidence of an infringement, it can adopt a decision prohibiting the conduct and imposing a fine of up to 10% of a company’s annual worldwide turnover.
just-food has asked Conserve Italia for a response to the EC’s allegation.
