The Italian Competition Authority (AGCM) announced the conclusion of its investigation into alleged anti-competitive practices in the Italian pig iron market, imposing administrative fines totaling €70 million on several foundries and the trade association Assofond.
According to the AGCM, the investigation revealed the existence of an anti-competitive agreement in violation of European Union laws in the Italian pig iron sales market. The violation was found to have commenced no later than 5 February 2004 and continued until 30 June 2024.
Nature of the alleged anti-competitive conduct
The Italian Competition Authority found that the parties coordinated their commercial strategies to support demands for price increases and to strengthen their bargaining power with customers with the stated goal of maintaining profit margins, particularly in times of economic crisis.
According AGCM, this coordination was carried out through:
- Exchange of commercially sensitive information
- Joint development and use of price indexation mechanisms known as “Assofund Indicators”
The authorities stated that these mechanisms allow foundries to coordinately update a growing share of pig iron prices, including sales profits.
Sanctions and size fine
The Italian competition authority noted that, given the seriousness and duration of the conduct, the maximum applicable fines could reach approximately 600 million euros. However, given what it called the serious crisis affecting the sector, the authorities imposed reduced fines totaling 70 million euros.
Assofond's reaction to the ruling
In a statement issued after the decision, Assofond, the association representing Italian foundries, rejected cartel allegations, calling the sanctions "unjustified and absurd" and penalizing a sector already struggling under serious pressure.
The association warned that the decision seriously jeopardized the continuity of its work and represented a broader blow to the association's system, as well as affecting what it called a strategic segment of Italy's engineering industry. The Assofond further said that the ruling risks undermining the continuity of operations of the companies involved and jeopardizing thousands of jobs, noting that the number of Italian iron foundries was halved during the period covered by the investigation due to closures and bankruptcies.
