Today, Director General Francesca Mariotti spoke at a hearing at the Senate's 10th Commission on the annual market and competition bill 2021 to illustrate Confindustria's assessments.

Competition is an economic policy strategy that pushes companies towards efficiency in the use of capital; it directs resources towards the most productive ones; it activates innovation, pushing companies to continuously rethink their products and processes, improving people's quality of life and work.

From the point of view of method, Confindustria appreciates the use of the annual law, as the use of emergency decrees does not allow for an adequate investigation of the choices made and induces the chasing of continuous 'touch-ups'. Therefore, Confindustria is in favour of the instrument and, above all, of its approval on an annual basis, which would allow for a gradual structuring of market interventions.

In terms of content, the measure envisages several sectoral interventions, as well as a strengthening of the role and prerogatives of the Competition and Market Authority (AGCM).

Although the interventions are largely agreeable, there are, according to Confindustria, critical points and shortcomings that should be addressed:

• ensure effective equality of treatment between public and private operators in certain areas, such as healthcare;
• Paying more attention to business investment by reviewing certain ways of calculating compensation for outgoing operators, as in the case of natural gas distribution, as well as ensuring effective protection of investments in innovation, as in the case of equivalent medicines.

Confindustria also emphasised the need for interventions to really look at the future market structure, defined first and foremost by European policies for the green transition, to ensure that pro-competitive policies take into account the relevant ongoing transformation processes.

Finally - and in a proactive vein - the perimeter of the bill could be extended to further areas, such as professional services, opening a reflection on fair compensation in order to circumscribe its application only in the presence of an obvious imbalance in the negotiating relations between the parties; and innovation, favouring in a structured and systematic manner the public procurement of innovation, which would have positive spin-offs in terms of quality and effectiveness of services rendered by the PA, as well as business development.

The main chapters

The concession system

Confindustria has repeatedly emphasised the need for organic legislation on concessions, which would guarantee transparent competitive procedures and provide for a duration of the concession consistent with the investment made by the company, assessing an exit fee in the event of a turnover of concessionaires.

These principles are well reflected in the measures concerning the concession of state-owned port areas, except for certain exceptions provided for in prohibition of cumulation of concessions, in a single entity, for the same activity and in the same port.

In matters of natural gas distribution concessionsThe sanctioning power of Local Authorities against the outgoing operator should be eliminated if it does not provide all the information necessary to prepare the tender within a certain deadline. Secondly, incentive and penalty measures should be introduced to make local authorities responsible for carrying out their tasks in relation to the tender procedures. Finally, for the evaluation of the reimbursement value of natural gas distribution plants in favour of outgoing operators, the modalities for simplifying the VIR-RAB deviation analysis procedure should be reviewed.

Sectoral interventions

In matters of local public servicesThe DDL's basic aims of opening up markets and combating excessive reliance on outsourcing are worthy of support. in-house. At the same time, Confindustria stresses the need for an organic, homogeneous, time-certain, concretely implementable reform with a transitional phase consistent with the economic-financial problems of the pandemic yet to be absorbed and the opportunities of the NRP.

In particular, in the local public transport measures are looming that could produce a regulatory segmentation of the market, between ongoing and predominantly in-house which will last even beyond 2030, on which the reform of local public services could act; and those to be entrusted by tender as early as this year, for which the obligation to hold a tender is envisaged, with penalties in the event of non-compliance. In this sense, it would be desirable for the intervention on the subject of entrusting LPT services to be included in the context of an overall revision of the sector's regulatory framework, as suggested in the final document of the ministerial study commission in charge of the subject.

With respect to measures on waste managementThe measures contained in the DDL aimed at strengthening efficiency and competitive dynamism in the sector are appreciable.

Confindustria, on the other hand, expressed opposition to the repeal of the rule making the classification of equivalent medicines as medicines paid for by the National Health Service upon expiry of the patent or supplementary protection certificate on so-called originators. In fact, together with the current possibility for equivalent drugs to obtain marketing authorisation during the term of the originator's patent protection, this risks encouraging counterfeiting conduct by placing the generic drug on the market before the patent expires, with the consequence of increasing litigation, to the detriment of the patent holder on whom the burden of proof lies.

Interventions in administrative procedures

Particularly appreciable, then, are the two delegations on the subject of revision of administrative procedures in a pro-competitive function.

The first involves the reconnaissance and simplification of administrative regimes. If achieved within a reasonable timeframe, and after consultation with operators, this will be a meritorious activity of removing unjustified constraints on economic activities and modernising the modus operandi of the PA. The second aims to simplify and make controls on economic activities more coordinated. We agree, among others, with the criterion that envisages enhancing the virtuous behaviour of companies, also through rewarding instruments.