The Italian competition authority, known as the Autorità Garante della Concorrenza e del Mercato, has fined Novamont S.p.A a total of €30,359,000 and an additional €1,701,052.08 in solidarity with its parent company ENI S.p.A. This penalty stems from Novamont's abuse of its dominant market position in the production of bioplastics, specifically lightweight and ultra-lightweight bags, from January 1, 2018, to December 31, 2023.

Novamont operates in a crucial sector aimed at reducing environmental impact, as these bags often become waste. Italian legislation, implementing EU Directive 2015/720, mandates that lightweight and ultra-lightweight bags must be biodegradable and compostable, with a minimum of 60% renewable raw materials. Novamont has developed a compliant product called Mater-Bi, securing over 50% market share for shopping bags and 70% for ultra-lightweight bags.

The authority found that Novamont established a dual system of exclusive supply agreements with two levels of the supply chain. Firstly, it entered into agreements with transformers—direct customers who purchase bio-compound to produce bags—requiring them to source exclusively from Novamont, thereby blocking competitors' market access. These transformers account for approximately 52% of the national demand for bio-compound for shopping bags and 70% for ultra-lightweight bags.

Secondly, Novamont's agreements with major retail chains, which are the primary buyers of these bags, also mandated that they purchase only products made from Mater-Bi. These retail chains represented up to 44% of the demand for shopping and ultra-lightweight bags and contributed significantly to the revenue of Novamont's transformer partners.

This exclusionary strategy has created a circular mechanism that reinforces Novamont's dominance. As long as major retailers commit to sourcing exclusively from Novamont's partners, those transformers are incentivized to accept Novamont's exclusive supply clauses. This has stifled healthy competition in the bioplastics market, preventing competitors from effectively marketing their products and hindering the development of alternative bioplastics.

The lack of competition not only has anticompetitive implications but also environmental consequences, as it obstructs the emergence of alternative and potentially more efficient bioplastics. A competitive market is essential for achieving the environmental protection goals set by European and national legislation, which could lead to the development of more affordable and higher-quality eco-friendly products.