According to the Authority, the bioplastic materials manufacturer may have implemented an exclusionary strategy that could hinder the development of lightweight and very lightweight plastic carrier bags with eco-compatible materials alternative to its own (Mater-Bi). This would not only be detrimental to competition, but also to the environmental protection objectives pursued by European and domestic legislators. 


The Italian Competition Authority has opened investigation proceedings against Novamont S.p.A. to ascertain alleged abuse of a dominant position, implemented at least since 2017, in breach of Article 102 of the TFEU in the raw materials markets for the manufacture of lightweight plastic carrier bags (LPBs) and very lightweight plastic carrier bags (VLPBs), compatible with Italian legislation.


Novamont produces bioplastic materials (Mater-Bi) suitable for the manufacture of plastic bags (shopping bags and bags for fruit and vegetables) according to the regulatory requirements in force in Italy, functional to counteract their environmental impact (for example, biodegradable and compostable bags). It is in this context that the company has signed exclusive agreements with, on the one hand, manufacturers of (bio)plastic bags (i.e. transformers who buy raw material and transform it into bags) and with, on the other hand, large-scale organised distributors and with other retailers who buy and use these bags. These exclusivity agreements could limit the use of alternative materials to Mater-Bi in the manufacture of lightweight and very lightweight plastic carrier bags (LPBs/VLPBs), with anti-competitive effects, both against bioplastics manufacturers competing against Novamont and plastic bag manufacturers that use raw materials other than Mater-Bi.


Safeguarding an open competitive process in the bioplastics sector helps achieve the environmental protection objectives pursued by European and domestic legislators, since it could encourage alternative and more efficient bioplastics than Mater-Bi and since it also favours, from a dynamic point of view, the development of cheaper or better quality eco-compatible products.


On Thursday, 4 April 2024, officials from the Italian Competition Authority carried out inspections at the premises of Novamont S.p.A. as well as those of other parties deemed to have elements useful to the investigation, with the assistance of the Special Antitrust Unit of the Italian Financial Police (Guardia di Finanza).


 Rome, 9 April 2024

Novamont Under Investigation by Italian Competition Authority

The Italian Competition Authority has initiated an investigation against Novamont S.p.A. for allegedly abusing its dominant position in the raw materials markets for lightweight and very lightweight plastic carrier bags. Novamont's exclusive agreements with manufacturers and distributors may be limiting competition by hindering the use of alternative materials to Mater-Bi, its bioplastic product. This conduct could have anti-competitive effects on both bioplastics manufacturers and plastic bag manufacturers using materials other than Mater-Bi. The investigation aims to ensure a competitive process in the bioplastics sector to promote environmental protection objectives and encourage innovation in eco-compatible products. Inspections were conducted at Novamont's premises and other relevant parties to gather evidence for the investigation.

Novamont Under Investigation by Italian Competition Authority

The Italian Competition Authority is investigating Novamont for potential abuse of dominant position in the bioplastic materials market, which could hinder competition and environmental protection goals.