Because the stock market feels good about the Antitrust on Amplifon
The fact-finding investigation launched by the market guarantor and the effects on the stock exchange for Amplifon stock
The market guarantor causes Amplifon shares to go red on the stock exchange. Here's how and why.
WHAT HAPPENED TO THE AMPLIFON STOCK ON THE STOCK STOCK
Amplifon sinks on Piazza Affari with the stock losing over 8% during the day (at 3.30 pm the drop was 4.5%) after the Antitrust Authority launched an investigation into the hearing aid markets .
It must be said that Amplifon shares are always very sensitive to news that emerges, both positive and negative (last week, for example, it recorded gains of around five points and drops of around four), underlined the Radiocor news agency -Sun 24 hours .
WHY THE ANTITRUST FINDINGS INVESTIGATION WAS CREATED
The Authority's fact-finding investigation does not specifically concern the company, but the market as a whole. In fact, the Competition and Market Authority has launched a fact-finding investigation into the hearing aid markets in Italy. These tools respond to widespread health needs, have a significant impact on people's daily lives and can represent a significant expense item both for individual consumers and for the national healthcare system.
THE HEARING AIDS MARKET
According to the authority chaired by Roberto Rustichelli, current market conditions do not seem to guarantee full transparency of the prices of products and related services. The investigation intends to delve deeper into the competitive dynamics of the reference markets, also taking into account the technological innovations that have occurred and the recent changes to the reference legislation.
THE PUBLIC CONSULTATION STARTED BY THE GUARANTOR
At the same time, the Authority also launched a public consultation on the issues specified in the provision launching the investigation. The investigation will now follow its own course and could result in nothing being done, as well as in possible actions by the authorities.
THE POINT OF THE RADIOCOR-SOLE 24 ORE AGENCY
“According to analysts, the news is completely unexpected and it is still too early to assess the implications that could lead to two alternative scenarios: greater demand stimulus measures/subsidies for consumers or price caps for hearing aids and related services – he written Radiocor – The latter scenario seems more likely, as Italy is historically a private market for hearing aid services (like Spain and the United States), unlike France, the United Kingdom and the Netherlands. Italy currently represents around 17% of total sales and “has very good margins”.
MARKET NUMBERS
According to estimates from the Ministry of Health, in fact, around 7 million Italians (12% of the population) have hearing problems and that 30% of them would use a hearing aid. Numbers which are destined to increase with the progressive aging of the population, emerge from the Guarantor's resolution .
THE GUARANTOR'S RESOLUTION COMMUNICATED BY THE GUARANTOR
The Authority intends to delve deeper into the competitive dynamics of the reference markets, also taking into account technological innovations and recent changes to the relevant legislation
The Competition and Market Authority has launched a fact-finding investigation into the hearing aid markets in Italy. These tools respond to widespread health needs, have a significant impact on people's daily lives and can represent a significant expense item both for individual consumers and for the National Health System.
According to the Authority, current market conditions do not seem to guarantee full transparency of the prices of products and related services. The investigation intends to delve deeper into the competitive dynamics of the reference markets, also taking into account the technological innovations that have occurred and the recent changes to the reference legislation.
At the same time, the Authority also launched a public consultation (Consultation text) on the issues specified in the provision launching the investigation. All interested parties can send relevant contributions to the email address [email protected] within the next 30 days.
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THE MEASURE ON THE FINDING-UP INVESTIGATION LAUNCHED BY THE AGCM
IC55 – HEARING AIDS MARKETS
Provision no. 30771 THE COMPETITION AND MARKET AUTHORITY AT ITS MEETING of 12 September 2023;
HAVING HEARED the Speaker, President Roberto Rustichelli;
GIVEN the law of 10 October 1990, n. 287; GIVEN article 12, paragraph 2, of law 10 October 1990, n. 287, pursuant to which the Authority may carry out fact-finding investigations of a general nature in economic sectors in which the evolution of trade, the behavior of prices or other circumstances give rise to the presumption that competition is prevented, restricted or distorted;
HAVING SEEN the Presidential Decree of 30 April 1998, n. 217 and, in particular, article 17, relating to fact-finding investigations of a general nature;
CONSIDERING the following elements:
1. Hearing aids, or hearing aids, are medical devices with the function of amplifying and/or compensating qualitatively and quantitatively the hearing deficit resulting from congenital or acquired pathologies. These are also technologically complex devices that respond to widespread health needs and have a significant impact on people's daily lives. According to recent estimates, at least 7 million Italians have hearing problems, corresponding to over 12% of the national population and, of these, approximately 30% currently use hearing aids. Even taking into account the progressive aging of the population, which as such is more subject to hearing difficulties, these are products whose diffusion is certainly destined to increase.
2. Hearing aids can constitute a significant expense item, even for the cheapest models, both for individual consumers and for the National Health System ("NHS"), which, based on current legislation regarding essential levels assistance, can cover at least part of the purchase costs2. The reference markets, relating to both audioprosthetic products and services for device configuration and assistance, also present peculiar structures and dynamics.
3. Based on the information available, current market conditions do not appear to guarantee full price transparency for the benefit of consumers, also taking into account the significant differentiation existing between products, with possible needs for customization in the technical configuration and in some cases in the shape of the device.
4. It also notes the difficulty of distinguishing between products and assistance services, also due to the current practice of providing such products and services in a combined manner. This combination, moreover, also has significant implications regarding the possibility for contracting authorities to proceed with separate purchases on behalf of the NHS, with significant effects in terms of breadth and plurality of supply sources and consequent cost savings.
5. Again according to the information already available, some technological innovations are affecting both production and distribution activities, in particular with regard to the availability of pre-configured products – i.e. requiring a lower degree of customization – and the possibility of supplying at least part of remote hearing aid services, with companies operating through online resale channels.
6. The Authority therefore deems it appropriate to proceed with an analysis of the hearing aid markets in Italy, in order to delve deeper into the market structures and the related competitive dynamics.
CONSIDERING, therefore, that it is necessary to proceed with the launch of a fact-finding investigation regarding the hearing aid markets in Italy, as there are circumstances which lead us to presume that, in the sector in question, there are obstacles to the correct unfolding of competitive dynamics;
All this having been said and considered;
RESOLUTION
to proceed, pursuant to article 12, paragraph 2, of law 10 October 1990, n. 287, to a fact-finding survey on the hearing aid markets in Italy.
As part of this investigation, within 30 days from the date of publication of this resolution on the Authority's website, it will be possible to send contributions on the topics referred to in the previous paragraphs, with particular regard to: (a) characteristics of the commercial dynamics and evolution of demand e
of the offer of hearing aids, also taking into account technological innovations in the offer of products and services as well as recent changes to the relevant legislation; (b) existence of competitive critical issues in the hearing aid markets, with specific reference to the Italian situation in light of current legislation; (c) efficiencies and critical issues in the methods of purchasing hearing aids by public health facilities. The relevant communications, bearing the wording "IC55 – Hearing apparatus markets – Call for inputs" and indicating the name of the sender, must be sent in editable format to the following electronic address: [email protected].
Where interested parties believe that their communications contain sensitive data, they must provide the same in both a confidential and public version; if a confidential version is not provided, what is received may be published in full.
This provision will be published in the Bulletin and on the website of the Competition and Market Authority.
THE GENERAL SECRETARY
Guido Stazi
PRESIDENT
Roberto Rustichelli
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-la-borsa-sente-bene-antitrust-su-amplifon/ on Mon, 25 Sep 2023 14:12:55 +0000.