Italian biodegradable plastics company Novamont and its parent company ENI were previously penalized by the Italian Antitrust Authority (AGCM) for abusing their market dominance in the bioplastics sector for fruit and vegetable bags.
The two companies announced they would appeal to the Italian Council of State.
On April 20, 2026, the Italian Administrative Court of Lazio (TAR Lazio) rejected Novamont's appeal against the fine.
Last July, the Italian Antitrust Authority (AGCM) fined Novamont and its parent company ENI €32 million (approximately RMB 256 million) for abusing their market dominance in the bioplastic raw material (Mater-Bi bioplastics) used to produce lightweight and ultra-lightweight fruit and vegetable bags between 2018 and 2023.
The Lazio Administrative Court ruled that the antitrust violations investigated by the Italian Antitrust Authority were clear and undisputed. Furthermore, the court characterized the abuse as a continuing violation, meaning the violation continues as long as the anti-competitive effects persist, not just based on the contract signing date. This determination also extends the scope of liability to the period after ENI's acquisition of Novamont, providing a basis for calculating the fine up to December 31, 2023.
Last July, the Italian Antitrust Authority (AGCM) fined Novamont and its parent company ENI €32 million (approximately RMB 256 million) for abusing their market dominance in the production of Mater-Bi bioplastic raw materials for lightweight and ultra-lightweight fruit and vegetable bags between 2018 and 2023. Italian biodegradable company Novamont has been fined over €32 million.
The Lazio Administrative Court ruled that the antitrust violations investigated by the Italian Antitrust Authority were clear and undisputed. Furthermore, the court characterized the abuse as a continuing violation, meaning the violation continues as long as the anti-competitive effects persist, not just based on the contract signing date. This ruling also extends the scope of liability to the period after Eni's acquisition of Novamont, providing a basis for calculating the fine up to December 31, 2023.
In a joint statement, Eni and Novamont stated: "Eni is being penalized due to the parent company's liability, but Eni only recently acquired control of Novamont and therefore believes it did not participate in the conduct involved in this case." As previously mentioned, Eni successfully acquired Novamont in October 2023.
Both companies also announced that they will appeal to the Italian Council of State, confident that their claims will be fully recognized in the subsequent legal proceedings.
In this case, Novamont, dissatisfied with the fine imposed by the Italian Antimonopoly Authority, first appealed to TAR Lazio (the first instance court), which was rejected. The next step is to appeal to the Italian Council of State, the appellate court for administrative litigation.
According to Italian administrative penalty principles, the penalty decision takes effect and is enforceable on the day it is served. Although the case is currently in the appeal stage, this does not affect the fact that the fine is already in effect and can be enforced.
