CNC Commences Formal Investigation Against Spanish Paper Envelope Producers And Distributors

Following inspections on 19 October 2010, the Spanish Competition Authority ('CNC') decided on 15 March 2011 to commence formal investigation proceedings against 17 companies for alleged anti-competitive practices involving market sharing and price-fixing agreements, as well as limitation of technical development in the market for manufacture, distribution and marketing of paper envelopes.

As a result of the inspections the Investigations Division of the CNC found sufficient initial evidence of the possible existence of prohibited conduct including, but not exhaustively: the dividing up of customers in relation to public and private tender processes for envelope supply for Spanish elections and major Spanish corporations respectively; price fixing in the distribution of catalogue envelopes aimed at Spanish printers and business; and restricting the technical development in relation to paper envelope manufacture, distribution and marketing.