ENI and others accused of cartel conduct as Italian watchdog imposes hefty fines

According to a press release issued by AGCM (the Italian competition authority), six companies selling fuel on the Italian market have been fined for cartel conduct. The companies were fined a total of nearly one billion euros. The largest share, roughly a third of the total, went to Italian energy giant ENI.

An investigation launched after a whistleblower came forward, according to the authority, found that the six companies coordinated their conduct specifically over the prices of biofuel components and how they were factored into fuel prices. The cartel operated from early 2020 to 30 June 2023. During that period, the price of biofuel components tripled.

According to the authority, the companies raised prices in parallel, sometimes even at the same time. The report also says the press helped the cartel by publishing the price of biofuel components on several occasions. According to the investigation, ENI itself provided this information to newspapers.

ENI, in which the Italian state also holds a significant stake, issued a press release in response to the decision.  The company expressed “disagreement and surprise”, arguing that the investigation “ignores market logic and misinterprets the facts”. It also said it considers the decision “further damage to its reputation” and will defend itself.

Not the first time

ENI has already faced AGCM in court several times. In the past, it or its subsidiaries have managed to overturn penalties in subsequent court cases. This case, along with a case from June this year in which ENI and its company Novamont were accused of abusing a dominant position, is still at an early stage.

The largest antitrust cases in the EU are generally handled by one of the Union’s most powerful bodies, DG Competition (Directorate-General for Competition), which has imposed fines worth billions of euros on several occasions.

Among national regulators, AGCM is one of the most active. This is partly because it has a relatively broad mandate that also covers consumer protection, marketing oversight and fair business practices. Italy’s relatively concentrated market is another factor. The authority has previously shown that it is willing to impose hefty fines on companies such as ENI and global giants like Apple and Amazon.

If the case and the size of the fine are upheld in court, it will be one of the largest penalties ever imposed by a national antitrust authority in Europe, as well as the largest fine ever issued by AGCM. However, Italian courts could also reduce or overturn the fine entirely, as they have in some previous cases.