Italy’s Antitrust Authority (AGCM) has imposed a significant fine on Novamont and its parent company Eni for abusing a dominant position in the market for compostable bioplastics used in shopping and ultra-light produce bags. Novamont has been fined €30.36 million, while Eni faces a joint liability fine of €1.7 million.
According to the AGCM, Novamont — producer of the patented Mater-Bi material — maintained a dominant position for years by implementing exclusivity agreements at two levels of the supply chain: with converters (companies that manufacture the bags) and with large-scale retail chains (GDO). This system, the Authority claims, effectively blocked competitors from entering the market, hindering the development of fair competition and, indirectly, slowing down the adoption of alternative, potentially more sustainable materials.
The AGCM describes the mechanism as a “circular exclusionary system,” in which both converters and retailers were contractually bound to use only Mater-Bi, thereby erecting barriers to entry for other bioplastics producers.
Novamont Responds: “Unfounded Decision, We Will Challenge It in Court”
Novamont swiftly responded to the decision, expressing “surprise” and stating it “firmly disagrees” with the AGCM’s findings. The company announced it will take legal action to defend its position.
“Novamont,” the company said in its statement, “was founded as a start-up in a market that didn’t exist — bioplastics. We have invested heavily in scientific research, reindustrialized six abandoned sites in Italy, and created a sustainable production model rooted in local communities.” Novamont emphasized that its work has always been focused on promoting innovation and supporting its partners in developing environmentally friendly solutions, offering technical assistance, certification support, and access to new experimental materials.
In a market where — according to independent research firm Plastic Consult — at least one in four bags is non-compliant, Novamont says it has worked to promote “quality and safety,” requiring its partner converters to meet strict specifications and raising awareness within the retail sector about offering reliable and sustainable products to consumers.
The company also criticizes the AGCM for failing to consider the specific dynamics of innovation: “We have provided full evidence that confirms the legality and fairness of our commercial practices. This ruling, instead, risks discouraging research and development in Italy’s bioplastics sector, and favoring the import of products that are not always of comparable quality.”
The Debate: Sustainability vs. Market Competition
The case highlights the complex balance between ensuring market competition and fostering sustainable innovation. While the Antitrust Authority acts to protect open markets, Novamont warns that such a sanction could stifle an industry that plays a vital role in Italy’s ecological transition.
The matter is now expected to move to the courts, where Novamont will seek to demonstrate the legitimacy of its business model, which it describes as rooted in innovation, local development, and environmental sustainability.