The AGCM watchdog accuses Novamont of having contracts with plastic bag manufacturers and large retailers that include "exclusivity" clauses obliging them to source Mater-Bi, a degradable plastic material developed by Novamont.

The material is used to produce light and ultra-light bags for fruits and vegetables.

"Novamont's exclusionary practice hindered the development of fair competition in the national markets for the production and sale of bio-compounds for shopping and ultra-lightweight bags," AGCM said in a press release.

"It effectively prevented competitors from finding viable outlets for their products and from operating successfully in those markets."

It fined Novamont 30.4 million euros and parent company Eni 1.7 million euros for the market abuse which it said spanned "at least" the period from January 1, 2018 to December 31, 2023.

The bioplastics sector "plays a key role in reducing environmental impact, given that bags often end up as waste", AGCM said.

The environmental benefit of biosourced plastic lies in how they reduce the CO2 emissions of the plastics sector.

Carbon dioxide (CO2) is the main driver of global warming.

Limiting the development of alternatives to Mater-Bi "not only harms competition, but also has significant environmental implications", and a competitive market in the sector was "essential to achieving the (EU's) environmental objectives", it said.

Eni did not immediately reply to a request for comment.

Novamont is one of the leading European manufacturers of bioplastics, alongside French company Sphere and German company BASF.

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