The water meters for domestic and industrial use cartel

On 29 October 2019, the Italian Competition Authority (AGCM – Autorità Garante della Concorrenza e del Mercato) launched an investigation against G2 Misuratori S.r.l., Maddalena S.p.a., Itron Italia S.p.a., Sensus Italia S.r.l. a Socio Unico e WaterTech S.p.a., to ascertain an alleged agreement restricting competition, set up during public tenders for the supply of water meters to operators of the integrated water service (SII – Servizio Idrico Integrato), in violation of Art. 2 l. n. 287/90 and Art. 101 of Art. 101 TFEU.

In an injunction dated 1 February 2022, the AGCM ascertained the existence on an anticompetitive cartel that, between 2012 and 2019, conditioned at least 161 tender procedures organized by 161 tender SII operators active in Italy for the procurement of water meters for cold water for domestic or industrial use.

The concertation involved the main operators in the Italian market, which account for more than 80% of the sales of cold water meters for domestic or industrial use in Italy and which together won around 90% of the analysed lots.

In view of the seriousness and duration of the conduct, the Authority imposed fines of over € 10 million. On 6 March 2023, the Lazio National Administrative Court (TAR – Tribunale Amministrativo Regionale) confirmed the existence of an anti-competitive agreement between the companies, considering that the AGCM had carried out an adequate analysis of the anti-competitive scope of the agreements, taking into account the economic context in which they took place and the production volume of the operators involved.

On the basis of the information acquired during the investigation, it emerges that the agreement was a strategy aimed at conditioning, according to a share allocation plan, the public procedures for the assignment of the supply of water meters from December 2011 to September 2019. This agreement limited the competition in a large number of tenders that took place throughout the country, even if they were announced at local level. Considerating the relevant market and the position of the participants in the agreement, it can be said that bid rigging aimed at dividing the market had a significant impact on competition. The participation of other domestic and foreign players to the procedures was really limited during the period of the cartel. This distortion led to an increased market penetration by G2 Misuratori S.r.l., Maddalena S.p.a., Itron Italia S.p.a., Sensus Italia S.r.l. a Socio Unico e WaterTech S.p.a.

Libra offers a free assessment of the possible damage. Should such damage be confirmed, Libra provides its clients with a shared strategy for claiming compensation quantified as the additional cost incurred by the SII operators for the purchase of water meters from the companies involved in the anti-competitive cartel. Libra bears all the remaining risks and costs for the recovery procedure.

Case sheet

• Water meters for domestic and industrial use cartel

AGCM, 1st February 2022; TAR, 6 March 2023

Damaging parties: G2 Misuratori S.r.l., Maddalena S.p.a., Itron Italia S.p.a., Sensus Italia S.r.l. a Socio Unico e WaterTech S.p.a

Damaged parties: 161 tender SII operators

Relevant period: December 2011 – September 2019