June 27, 2025 – Italian Bioplastics Giant Faces Record €32.1M Antitrust Fine
In a landmark decision shaking Europe’s sustainable materials sector, Italy’s Competition and Market Authority (AGCM) has imposed massive penalties totaling €32.1 million on bioplastics leader Novamont and its parent company Eni for alleged monopolistic practices between 2018-2023.
Market Dominance Under Scrutiny
The investigation, triggered by a whistleblower report in September 2023, revealed Novamont’s overwhelming control of Italy’s bioplastic raw material supply. The company reportedly commanded over 50% of the shopping bag material market and a staggering 70% share in ultra-thin produce bag materials through controversial exclusive supply contracts.
AGCM’s 45-page ruling details how Novamont created what regulators call a “closed-loop stranglehold” – forcing processors to exclusively use its Mater-Bi resins while requiring retailers to source finished products only from contracted manufacturers. This dual restriction effectively blocked competitors from entering the market.
Industry Shockwaves
The Milan-based bioplastics pioneer expressed “profound dismay” at the decision, defending its business model as necessary to safeguard intellectual property and maintain quality in Italy’s €1.2 billion compostable plastics sector. Novamont highlighted its €500 million R&D investments since 1990 and warned the ruling could flood the market with substandard imports.
A spokesperson told AsiaMB: “Our quality protocols prevent the 25% of non-compliant plastic bags currently circulating in Italian supermarkets from becoming 50%.” The company maintains its contracts helped build Italy’s world-leading bioplastics infrastructure.
Global Implications
The case arrives as biodegradable plastics demand surges 18% annually worldwide. Market analysts suggest this precedent could reshape antitrust approaches in sustainable materials, particularly as governments implement stricter plastic waste policies.
“Novamont’s dilemma reflects the tension between protecting innovation and ensuring fair competition in green technologies,” commented Dr. Elena Ricci, materials sector analyst at Bocconi University. “Regulators worldwide will study this case when examining similar market dominance claims.”
The ruling comes three months before the EU’s Single-Use Plastics Directive expansion takes effect, potentially intensifying competition in biodegradable packaging solutions across Europe. Industry observers anticipate Novamont will appeal the decision within the 60-day window.