The Cement Cartel

With provision no. 26705/2017, the Italian Antitrust Authority sanctioned 13 companies for a total of 184 million euro for violation of art. 101 TFEU. The sanctioned companies, namely Italcementi, Buzzi Unicem, Colacem, Cementir, Sacci, Holcim, Cementirossi, Barbetti, Cementeria di Monselice, Cementizillo, Calme, Moccia and Tsc, and Aitec have engaged in anti-competitive practices aimed at coordinating prices of cement in Italy and dividing territories.

From the investigation activity carried out by the Italian Antitrust Authority it emerges that the agreement, which lasted from June 2011 to the end of January 2016, “was based on a unitary and stable agreement model over time, according to which, as emerges from the evidence acquired, the cement companies  defined ex ante in an agreed manner, also during association meetings, identical nominal increases in the price of cement to be communicated in advance to customers “.

It is estimated that this agreement may have caused an average damage ranging between 10% and 20%, with peaks of 25%, which amounts to an increase in the price of cement, to the detriment of the construction sector (Source: Oxera – Damages, Quantifying Antitrust. “Towards non-binding guidance for courts.” Study prepared for the European Commission – 2009).

Due to the seriousness of its conduct, Italcementi alone was originally sanctioned for 84 million. Despite a first victory at TAR Lazio, on 31 December 2018 the Italian State Council, although partially upholding the appeal brought by Italcementi and reducing its fine to 27 million, definitely ascertained the existence of the cartel, so that damaged companies may file claims for compensation for the damages suffered.