12152 Pasta makers fined

Top Pasta producers fined for price fixing.
Italy’s antitrust authority has fined 26 pasta makers and the national pasta makers union UNIPI, 12.5 million euros for unfair practices that stifled competition and drove up pasta prices for consumers.
According to the antitrust authority, the union and the country’s leading pasta producers – which account for 90% of the national market – were found guilty of price fixing. Prices have soared by about 25% over the past year even while wheat prices began to fall in late 2008.
The increases enraged consumers, many of whom reduced their pasta consumption. In its probe the antitrust authority ruled that pasta producers unfairly engaged in price-fixing agreements. Also fined were the national food market association, Unionalimentari and the national union of small and medium sized food businesses, Unpmia, for issuing orders to their members to uniformly raise prices.
In response to the allegations, pasta makers, justified their price hikes on the grounds that wheat prices had soared due to speculation on biofuels and that production costs were driven up by higher fuel and energy prices and increased labour costs.
UNIPI says it will appeal the decision. Of the 26 pasta producers fined, Barilla was ordered to pay 6 million euros, De Cecco and Divella 1 million and Garofalo 500,000.
Consumer groups and farmers associations praised the ruling. It is only through free competition and combating speculation that we can guarantee real price controls for the consumer, said Unione Consumatori.