The Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato, AGCM) has concluded a major antitrust investigation into the Italian market for iron castings, imposing fines totaling €70 million on 16 foundries and the industry trade association Assofond for participating in an unlawful anti-competitive agreement.
According to the Authority, the infringement constituted a cartel in breach of Article 101 of the Treaty on the Functioning of the European Union (TFEU) and was implemented over an exceptionally long period, from at least 5 February 2004 until 30 June 2024.
The decision concerns the following undertakings: C2MAC Group SpA; Fonderia Corrà SpA; Fonderie Orazio e Fortunato De Riccardis Srl; Fonderie Guido Glisenti SpA and its subsidiary Lead Time SpA; Pilenga Baldassarre Foundry Srl and its parent company EF Group SpA; Fonderie Mora Gavardo Srl and its parent company Camozzi Group SpA; Zanardi Fonderie SpA; VDP Fonderia SpA; Fonderie Ariotti SpA; Ironcastings SpA; Fonderia Zardo SpA; ZML Industries SpA and its parent company Cividale SpA; as well as the trade association Assofond.
The Authority found that the parties coordinated their commercial strategies with the aim of supporting price increases, strengthening their bargaining power vis-à-vis customers, and safeguarding profit margins, particularly during periods of economic downturn. This coordination was achieved through the systematic exchange of competitively sensitive information and the joint development and use of price indexation mechanisms known as the “Assofond Indicators”.
These indicators enabled the foundries to apply coordinated price updates to an increasingly significant share of iron casting prices, extending beyond cost components to include sales margins. The Authority concluded that this conduct significantly restricted competition in the Italian iron castings market.
Given the gravity and duration of the infringement, the AGCM stated that the maximum applicable fines could have reached approximately €600 million. However, in determining the final penalties, the Authority took into account the severe and prolonged crisis affecting the sector, ultimately reducing the aggregate fines to €70 million.
The decision underscores the Authority’s continued focus on long-standing and structurally harmful cartels, while also reflecting a degree of proportionality in sanctioning in light of adverse economic conditions in the affected industry.