Italy’s Competition Authority (AGCM) has imposed a total of €70 million in fines on 16 foundries and their trade association, Assofond, in connection with one of the most serious competition infringements identified in the country’s pig iron sector in recent years. The authority ruled that the companies violated Article 101 of the Treaty on the Functioning of the European Union by coordinating their commercial strategies over a prolonged period.
According to AGCM’s findings, the anti-competitive practices were carried out between 5 February 2004 and 30 June 2024. The companies were found to have operated a long-standing coordination model, particularly during periods of economic slowdown and input cost volatility, with the aim of supporting price increase demands, strengthening their bargaining position vis-à-vis customers, and preserving profit margins.
A structure driven by continuous contacts
The authority noted that the arrangement did not take the form of a single secret agreement, but rather operated as a network of interactions sustained through regular meetings under the umbrella of Assofond, bilateral contacts, and multilateral discussions. During this process, the companies exchanged sensitive commercial information and jointly developed so-called “Assofond Indices,” which facilitated aligned price movements across the sector.
AGCM stressed that while raising prices in response to higher costs is a natural commercial reaction, the infringement lay in the fact that pricing decisions were not taken independently but were instead coordinated collectively.
QEMP, IDT and TET indices under scrutiny
One of the key tools at the centre of the investigation was the QEMP (Quota Extra Materia Prima) index, developed by Assofond in 2004. The authority found that QEMP was applied by the foundries concerned as a standard surcharge per tonne in euro terms, pushing prices higher across the sector simultaneously, regardless of differences in individual production processes.
In addition to QEMP — which accounts for roughly one-third of the final price of pig iron products — two other indicators, IDT and TET, were also found to play a similar role in aligning companies’ price adjustment targets.
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