Italy’s antitrust authority has reportedly issued a fine of over €60 million to Unilever Italy for allegedly abusing its dominant position in the ice cream market through its Algida brand.
In its ruling, the authority claimed that the consumer goods company violated EU regulations by hindering the growth of competitors in the market of prepackaged, single-serve ice creams.
Following a complaint made by popsicle manufacturer La Bomba, an investigation by the authority claimed that Unilever used an 'exclusionary strategy' in Italy, making loyalty and exclusivity agreements with its commercial business customers.
It claimed that this behaviour encouraged Unilever's customers to stock only one brand of ice cream, limiting freedom of choice for the end consumer, and damaging the business of its competitors.
In response, Unilever Italy issued a statement saying that the company "firmly rejects" the authority's conclusion, and intends to appeal the decision.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine.
