91999E0779

WRITTEN QUESTION E-0779/99

by Cristiana Muscardini (NI) to the Commission

(29 March 1999)

Subject: Privatisation and monopoly in the dairy sector

The company Parmalat has recently acquired a series of Italian companies operating in the dairy sector, ranging from Polenghi to the Rome milk depot in Italy, and has begun a policy of expansion abroad, particularly in Brazil. These acquisitions have led to an increase in the company's level of debt and a de facto monopoly in the milk sector.

Since the Commission rightly intervened at the time of the first sale of the Rome milk depot, which it considered to be an instance of state aid, will it say whether it now intends to intervene in order to stop an acquisition that will create a monopoly, or at the very least a dominant position, in the dairy sector which will be contrary to the interests of consumers and the principle of free competition?

Answer given by Mr Van Miert on behalf of the Commission

(4 May 1999)

Under the Merger Regulation(1) the Commission has sole competence for all concentrations, i.e. mergers, acquisitions and full function joint ventures, which have Community dimension, that is, involving enterprises whose turnover meets the thresholds prescribed in the Merger Regulation. Below these thresholds Member States may apply their own merger laws.

All concentrations to which the Merger Regulation applies must be notified to the Commission before they are put into effect.

The Commission investigates all notified concentrations to assess whether or not they will create or strengthen a dominant position which significantly impedes competition in the common market or a substantial part of it. According to the result of this investigation, the Commission adopts a decision on the compatibility or incompatibility of the concentrations with the common market.

As regards the acquisitions by the undertaking Parmalat mentioned by the Honourable Member, the Commission has so far not received any notification thereof. Indeed, these acquisitions would have no Community dimension, and the Commission is aware that the Italian competition authority (Autorità Garante della Concorrenza e del Mercato) is carrying out investigation procedures on them. In particular, the authority has already decided to close the procedure on the acquisition of the Rome milk depot, while as regards Polenghi the examination is still pending.

The Commission suggests the Honourable Member could address a similar question to the Italian competition authority.

(1) Council Regulation (EEC) 4064/89 of 21 December 1989, OJ L 395, 30.12.1989; corrected version OJ L 257, 21.9.1990; as last amended by Council Regulation (EC) 1310/97 of 30 June 1997 amending Regulation (EEC) 4064/89 on the control of concentrations between undertakings, OJ L 180, 9.7.1997; corrigendum in OJ L 40, 13.2.1998.