June 24, 2025 13:42

The Italian Competition Authority (AGCM) has imposed fines totalling €32.1 million jointly on Novamont and its parent company ENI-Versalis for abusing their dominant position in the market for Mater-Bi bioplastics, specifically used for compostable shopping bags.

According to the Antitrust authority, the companies implemented an exclusionary strategy against competitors between January 1, 2018, and December 31, 2023.

The investigation, launched last year following anonymous reports, found that Novamont controlled over 50% of the Italian market for compostable shopping bag bioplastics and approximately 70% of the market for ultralight bags used for fruit and vegetables.

According to AGCM, the dominant position was maintained through two-tiered exclusive agreements: firstly, by obliging bag manufacturers to source exclusively from Mater-Bi; secondly, by contractually binding major retail chains to purchase compostable bags solely from Novamont's affiliated producers. These exclusive agreements covered up to 44% of the total retail demand for compostable bags and represented as much as 51% of turnover for Novamont's partner manufacturers.

The Authority indicated that such behaviour hindered fair market competition, effectively preventing other bioplastics producers from competing adequately in the Italian market.

Novamont expressed surprise and disappointment, stating that the Antitrust decision failed to consider the distinctive aspects of technological innovation. The company maintains it thoroughly demonstrated throughout the investigation the legitimacy of its commercial practices aimed at protecting quality and innovation. Novamont, which plans to appeal the decision in court, argues that AGCM’s ruling discourages research and development of sustainable products in Italy, instead promoting imports that are often of lower quality.

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