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COMMISSION FINES THE FLAT GLASS CARTEL IN ITALY AND CONDEMNS THE ABUSE OF DOMINANT POSITION BY THIS CARTEL

Reference:  IP/88/784    Date:  07/12/1988
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  I. The Commission today has adopted a decision finding that the
  undertakings Fabbrica Pisana SpA (subsidiary of Saint-Gobain, the
  French group), Società Italiana Vetro - SIV SpA (subsidiary of the
  state-owned holding company EFIM) and Vernante Pennitalia SpA
  (subsidiary of PPG-Industries, an American group) have infringed
  Article 85(1) of the Treaty by restricting competition on the Italian
  flat glass market, controlled to a large extent by the three
  companies.
  The agreements and concerted practices lasted at least from 1983 to
  1986 and concerned :
  (a)   prices and terms of sale for glass in Italy for use others than
        in the motor industry;
  (b)   prices and the quota sharing for glass for the motor industry in
        Italy;
  (c)   market sharing arrangement by systematic exchanges of products
        between competitors agreed over long periods and having as their
        object in this case the reinforcement of restrictive practices
        regarding prices and market sharing.
  These restrictions affected trade between Member States because they
  also concerned products which the three undertakings imported from and
  exported to other EEC countries and because they tended to isolate the
  Italian market and prevent economic interpenetration as sought by the
  Treaty.
  In view of the seriousness and duration of the infringements, and the
  fact that the three undertakings have committed infringements in the
  past, the Commission, while taking account of the economic
  difficulties facing the glass industry during a part of the relevant
  period, has decided to impose the following fines for the
  infringements of Article 85(1):
  - 7,000,000 ECU on Fabbrica Pisana SpA,
  - 4,700,000 ECU on Società Italiana Vetro - SIV SpA,
  - 1,700,000 ECU on Vernante Pennitalia SpA.
                                   - 2 -
  II. The Commission's decision also finds that the three undertakings
  concerned abused their collective dominant position on the Italian
  market, which is a substantial part of the Common Market.
  The structural links between the three firms based on the systematic
  exchange of products and on the special relationship they enjoy with
  the major distributors in order to control supply to the market,
  supported the conclusion that Fabbrica Pisana SpA, Società Italiana
  Vetro - SIV SpA and Vernante Pennitalia SpA acted on the market as a
  single entity and not as individual enterprises.
  The collective dominant position appeared from the market share in
  Italy (79% for glass for uses other than in the motor industry and 95%
  for glass for the motor industry) and from the fact that these firms
  are part of multinational groups which control at least 50% of the EEC
  supply of flat glass.
  The abuses alleged are the agreements and practices concerning prices
  and terms of sale for glass for uses other than in the motor industry
  and concerning prices and quota sharing for glass used in the motor
industry.