The Italian competition authority and the Bank of Italy presented their report, “The State of Competition in Italy,” at a conference in Rome. It assesses competition through three measures: firms’ markups, revenue concentration, and business dynamism.

Between 2010 and 2023, the increase in markups—the ratio of prices to production costs—was moderate and occurred mainly in sectors that had lower margins at the start of the period. Revenue concentration rose during the sovereign debt crisis but had returned to levels close to those at the beginning of the period by 2023. The report therefore describes a different pattern from that seen in countries such as the United States, where rising margins and concentration may indicate weakening competition.

Despite this overall stability, some Italian sectors remain highly concentrated, and the same firms continue to occupy many leading market positions. There are signs that turnover among market leaders has increased in recent years, but it remains limited.

Business renewal has also been held back by unfavorable demographic trends: for much of the previous decade, more firms closed than were created. This trend reversed only from 2021. The report says that removing obstacles to new firms’ entry and to the growth of more productive businesses can strengthen incentives to innovate and improve efficiency, benefiting productivity, economic growth, and consumers.