Italy antitrust body fines pasta makers 12.5 mln euros

Thu Feb 26, 2009 11:56am GMT

MILAN Feb 26 (Reuters) - Italy's antitrust authority has fined 26 pasta makers and an industry group 12.5 million euros

($15.92 million) for operating a cartel, the agency said on Thursday.

Barilla, the world's biggest pasta maker, was handed the largest fine, 5.7 million euros, for the price-fixing scheme.

The cartel's members made up about 90 percent of Italy's market for pasta, a national staple, the antitrust watchdog said in a statement.

The companies and the Industrial Union of Italian Pasta Makers (UNIPI) "put into practice a restrictive-competition accord aimed at harmonising increases in the sale price for semolina dry pasta that applies to the retail sector," it said.

The price-fixing ran from October 2006 until at least the beginning of March 2008, the authority said. From May 2006 to May 2008, the average price to retailers increased 51.8 percent, while the final price to consumers rose 36 percent.

In a statement, Barilla called the ruling "baseless" and said it would appeal.

UNIPI said in a separate statement there had been no speculation in the sector nor an accord that could damage consumers.

Garofalo, which was fined 474,401 euros, rejected the finding. The company reserves the right to take further action, it said in a statment.

The authority also fined the Unionalimentari food association 1,000 euros for directing members on a uniform price increase.

($1=.7853 Euro)

(Reporting by Ian Simpson, Editing by Peter Blackburn)

((ian.simpson@reuters.com; +39 02 6612 9666; Reuters Messaging: ian.simpson@reuters.com@reuters.net)) Keywords: ITALY PASTA/

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