Eni and Novamont, 32 million fine for abuse of dominant position in bioplastic bags

The Antitrust Authority has imposed a fine of 30.36 million euros and one of 1.7 million euros on Novamont , jointly with its parent company Eni , for abuse of a dominant position in raw materials for the production of light and ultra-light bags for fruit and vegetables, through an exclusionary strategy against competitors, at least from 1 January 2018 to 31 December 2023.

Novamont operates in the national markets of bioplastic raw materials , for example bio-compounds, for the production of shopping bags and ultra-light bags for fruit and vegetables. Since this is a very important sector in contrasting environmental impact, for this purpose the directive has established that shopping bags and ultra-light bags can only be biodegradable and compostable and that ultra-light bags must also have a renewable raw material content of at least 60%.

The authority has ascertained that Novamont has developed a compliant product , called Mater-Bi , acquiring a dominant position in the national market for the production of bioplastics for shopping bags and ultra-light bags, with a share always higher than 50% in the first case and 70% in the second case.

In these markets, Novamont has created “a double system of agreements with exclusive supply clauses” with processors and large-scale distribution, explains the Authority, determining “ an abusive policy of exclusion for competitors ”.

The obstacle to the full development of alternative products to Mater-Bi has not only an anti-competitive impact, but also an environmental aspect. According to the Antitrust, "an open competitive process in the bioplastics sector is essential to achieve the environmental protection objectives pursued by European and national legislators. Healthy competition could lead to the emergence of alternative and more efficient bioplastics and also favor the development of more economical or better quality eco-friendly products".

As the company disclosed, Novamont had a revenue of 265 million euros in 2024, with the amount of the fine equivalent to 11% of the balance sheet. Different for Eni, which had a reduced fine, given the 6.4 billion euros of profits in 2024.