91997E3408

WRITTEN QUESTION E-3408/97 by Roberta Angelilli (NI) to the Commission (28 October 1997)

Subject: Privatization of the central dairy in Rome

For some time now the Italian monopolies commission has been investigating Rome city council's handover of the central dairy to Cirio. After the purchase of the dairy Cirio would acquire almost 70% of the milk market in the Lazio region, an excessive share which might jeopardize free competition in the sector. Furthermore, the existing relationship between Cirio and Parmalat, the two main Italian producers of milk might, in view of their shared interests, upset the market, because they have acquired a dominant position, thereby destroying the competition. All this casts a shadow over the entire sales operation carried out by Rome city council.

In view of all this, can the Commission say:

1. whether it knows about the investigations being carried out by the Italian monopolies commission into the privatization of the central dairy of Rome;

2. whether the takeover of the dairy by Cirio may strengthen a dominant position on the market, thereby jeopardizing free competition;

3. whether the entire operation of privatizing the central dairy can therefore be considered lawful?

Answer given by Mr Fischler on behalf of the Commission (26 November 1997)

At the end of 1996 the Commission received a complaint about the grant of public funds for the restructuring of Centrale del Latte di Roma and challenging the conformity of the procedure for the privatisation planned by the municipality of Rome with the Community rules on public contracts.

The matter is currently being examined, so the Commission has not yet adopted a position on this complaint.

In view of the above, the Commission regrets to inform the Honourable Member that it is not in a position to answer the questions raised about the privatisation of this company until it has adopted an opinion on the above-mentioned complaint.