Italy fines oil giant Eni over bioplastic market abuse

Rome: Italy s competition watchdog said Tuesday it has fined oil giant Eni and its plastics unit Novamont some 32 million euros ($37 for abuse of a do...

Rome: Italy's competition watchdog said Tuesday it has fined oil giant Eni and its plastics unit Novamont some 32 million euros ($37 for abuse of a dominant market position in plastic bag production.

The AGCM watchdog accuses Novamont of having contracts with plastic bag manufacturers and large retailers that include "exclusivity" clauses obliging them to source Mater-Bi, a degradable plastic material developed by Novamont.

The material is used to produce light and ultra-light bags for fruits and vegetables.

"Novamont's exclusionary practice hindered the development of fair competition in the national markets for the production and sale of bio-compounds for shopping and ultra-lightweight bags," AGCM said in a press release.

"It effectively prevented competitors from finding viable outlets for their products and from operating successfully in those markets."