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Codacons filed a complaint against Federacciai over competition rule violations

Italy’s consumer rights group Codacons has officially filed complaints with the Italian Competition Authority and the European Commission, alleging that a vested interest group linked to the Italian Steel Producers Association, Federacciai, may have violated competition rules.

Codacons filed a complaint against Federacciai over competition rule violations

The authority stated that the situation could negatively impact prices and product supply across a wide range of sectors, from automotive and white goods to construction materials and other steel-containing products.

At the heart of the complaint are statements made by Federacciai regarding the planned Metinvest Adria steel production facility in Piombino. According to Codacons, these statements aim to oppose the project. The strategically important project has received support from political parties, public institutions, trade unions, and industry representatives.

On July 10, three key agreements were signed as part of the project: the Framework Agreement involving the Ministry of Labor and trade unions; the Program Agreement signed by Metinvest, Danieli, various ministries, local authorities, and institutions; and the Development Agreement, supported by Invitalia under environmental protection-focused development contracts.

Codacons noted that once implemented, the project would significantly increase coil production and nearly halve the country's import needs. The facility is also expected to reduce CO2 emissions to about one-twentieth of levels seen in blast furnace production due to its much lower carbon footprint.

According to the authority, Federacciai’s stance is viewed as an attempt to protect the advantageous position of a limited number of electric arc furnace producers. This approach conflicts with the interests of around 30,000 stakeholders in the sector as well as consumers. Codacons emphasized that the Piombino facility's operation would boost competition, leading to lower prices and improvements in quality and innovation.

For these reasons, Codacons has requested the Antitrust Authority and European Commission to launch an investigation into the potential abuse of a dominant position and, if necessary, to refer the case to other relevant bodies.

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