The Italian Competition Authority (AGCM) has announced the conclusion of its investigation into alleged anti-competitive practices in the Italian cast iron market, imposing administrative fines totaling €70 million on several foundries and on the trade association Assofond.
According to AGCM, the investigation revealed the existence of an anti-competitive agreement in breach of the European Union laws in the Italian market for the sale of cast irons. The infringement was found to have started no later than February 5, 2004, and to have continued until June 30, 2024.
Nature of alleged anti-competitive conduct
The Italian Competition Authority found that the parties coordinated their commercial strategies to support price increase requests and to strengthen their bargaining power with customers, with the stated aim of preserving profit margins, particularly during periods of economic downturn.
According to AGCM, this coordination was carried out through:
- Exchanges of commercially sensitive information
- The joint development and use of price indexation mechanisms known as the “Assofond Indicators”
The authority stated that these mechanisms allowed foundries to update, in a coordinated manner, an increasing share of cast iron prices, including the sales margin.
Sanctions and fine assessment
The Italian Competition Authority noted that, given the seriousness and duration of the conduct, maximum applicable fines could have reached approximately €600 million. However, taking into account what it described as the significant crisis affecting the sector, the authority imposed reduced penalties totaling €70 million.
Assofond’s response to the ruling
In a statement released following the decision, Assofond, the association representing Italian foundries, rejected the cartel allegations, describing the sanctions as “unjustified and absurd” and as penalizing a sector already under severe pressure.
The association warned that the decision seriously jeopardizes its operational continuity and represents a broader blow to the association system, while also affecting what it described as a strategic segment of Italy’s mechanical engineering industry. Assofond further stated that the ruling risks undermining the continuity of operations at the companies involved and threatening thousands of jobs, noting that the number of Italian cast iron foundries halved during the period covered by the investigation due to closures and bankruptcies.
