THE ITALIAN COMPETITION AUTHORITY

In its meeting of June 10, 2025;

Heard the rapporteur, Saverio Valentino;

Having regard to Article 102 of the Treaty on the Functioning of the European Union (“TFEU”);

Having regard to Regulation (EC) No. 1/2003 of the Council of December 16, 2002;

Having regard to Law No. 287 of October 10, 1990;

Having regard to Presidential Decree No. 217 of April 30, 1998;

Having regard to its resolution of March 26, 2024, No. 31143, by which it initiated proceedings pursuant to Article 14 of Law No. 287/1990 against Novamont S.p.A. and ENI S.p.A. to ascertain the existence of violations of Article 102 TFEU;

Having regard to the communication of July 4, 2024, by which Novamont S.p.A. and ENI S.p.A. submitted commitments pursuant to Article 14-ter of Law No. 287/1990;

Having regard to its resolution adopted on September 17, 2024, by which it rejected the commitments submitted by Novamont S.p.A. and ENI S.p.A.;

Having regard to the communication of the findings of the investigation sent to the parties on February 21, 2025, pursuant to Article 14 of Presidential Decree No. 217/1998;

Having regard to its resolution of March 6, 2025, No. 31489, by which the deadline for completion of the proceedings was extended to June 13, 2025, due to an extension request submitted on February 27, 2025, by Novamont S.p.A.;

Having regard to the briefs submitted by Novamont S.p.A., ENI S.p.A., BASF SE, and Biotec Biologische Naturverpackungen GmbH & Co. KG on May 2, 2025;

Having heard at the final hearing on May 12, 2025, the representatives of Novamont S.p.A., ENI S.p.A., BASF SE, Biotec Biologische Naturverpackungen GmbH & Co. KG, and Papier Mettler Italia S.r.l., who had so requested;

Having examined the case documents and the evidence collected during the investigation;

CONSIDERED AS FOLLOWS:

Main Points from the Italian Competition Authority (AGCM) Decision (June 2025)

1. The Case

• The AGCM investigated Novamont S.p.A. (bioplastics producer, known for Mater-Bi) and its parent company ENI S.p.A.
• The concern: possible abuse of dominant position under Article 102 TFEU in the Italian market for biodegradable/compostable bioplastics used in shopping bags and produce bags.

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2. How the Case Started

• Anonymous complaints (2023) claimed Novamont had agreements with large supermarket chains (GDO) that effectively excluded competitors.
• The allegation: Novamont supplied raw materials (Mater-Bi) only through a network of “partners,” who then produced the bags for supermarkets.
• This allegedly shut out smaller companies not using Mater-Bi.

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3. Market Context

• EU and Italian laws require shopping bags and fruit/vegetable bags to be biodegradable, compostable, and partly bio-based.
• This created a strong demand for products like Novamont’s Mater-Bi.
• Italy is the largest European market for compostable plastics (about 55% of EU demand).

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4. Novamont & ENI

• Novamont: Europe’s leading supplier of starch-based bioplastics.
• ENI (via Versalis) took full control of Novamont in 2023.
• Novamont held a very large market share (over 40% EU-wide, and 50–60% in Italy in recent years).

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5. Competitors Involved

• BASF SE, Biotec GmbH, and Papier Mettler Italia intervened in the case, arguing that Novamont’s practices harmed competition.

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6. Investigation Findings

• The Authority confirmed that Novamont:
  • Entered exclusive supply agreements with supermarkets and bag producers.
  • Required or incentivized the use of Mater-Bi, limiting alternative bioplastics.
  • Leveraged its dominant position to restrict access to the market.
• This restricted competition and harmed smaller producers, in violation of Article 102 TFEU.

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7. Outcome

• The Authority closed the investigation with findings against Novamont and ENI.
• Fines were imposed (exact numbers are redacted in the public version).
• Novamont and ENI must end the exclusivity practices and ensure open access to the market.

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✅ In short:

The Italian Competition Authority found that Novamont (owned by ENI) abused its dominant position in the bioplastics market by tying up supermarket supply with exclusive deals, blocking competitors. They were fined and ordered to stop these practices.

Final Decision – Sanctions

1. It is ascertained that ENI S.p.A. and Novamont S.p.A. committed an abuse of dominant position in violation of Article 102 TFEU, in the Italian market for biodegradable/compostable bioplastics used for carrier bags and fruit/vegetable bags.
2. For this infringement:
   • ENI S.p.A. is fined €5,000,000 (five million euro).
   • Novamont S.p.A. is fined €22,000,000 (twenty-two million euro).
3. The companies must cease the unlawful conduct immediately and refrain from repeating it in the future.

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