The State of Competition in Italy - 2026

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Competition is a key condition for well-functioning markets and, more broadly, for economic growth. Open and contestable markets promote a more efficient allocation of resources by encouraging firms to keep costs down, improve the quality of the goods and services they provide, and invest in innovation. Competitive pressure also promotes the diffusion of the most efficient technologies and production practices and facilitates the entry of new firms, with positive effects on productivity, prices and, ultimately, consumer welfare.

The evolution of competitive dynamics therefore plays a central role within a country’s productive system, insofar as competition constitutes a means of pursuing fundamental public interests, such as improving citizens’ well-being, technological progress, employment and economic growth.

The analysis of these dynamics falls within the institutional remit of the Italian Competition Authority. It is conducted with the scientific collaboration of Banca d’Italia and helps increase the evidence available to the Authority in carrying out its institutional functions and promoting the effective functioning of markets. The aim of this Report is to provide a comprehensive description of the state of competition in the Italian economy, looking at the changes that took place between 2010 and 2023.

The Report aims to contribute to the economic debate on the evolution of competition in advanced economies, building on numerous empirical studies that have found a weakening of competitive dynamics, particularly in the United States.

As competition is a complex phenomenon that cannot be observed directly, the Report draws on a range of indicators that capture it from different perspectives and provide complementary information. This approach is consistent with the most recent academic and policy literature and provides a comprehensive picture of the multiple dimensions of competitive dynamics in Italy, drawing on empirical evidence at different levels of sectoral disaggregation.

The Report consists of three chapters. The first chapter analyses price margins relative to costs (mark-ups). This is one of the main indicators of market power, insofar as it reflects firms’ ability to set prices above marginal costs, unlike what is observed, in principle, in a perfectly competitive market, where prices and marginal costs tend to coincide.

The second chapter examines indicators relating to market structure, which measure the degree of concentration of turnover amongst the firms operating within each sector, providing insights into the competitive landscape.

Finally, the third chapter focuses on the indicators of business dynamism that, by reflecting the ease with which firms enter and exit the market and the stability of leadership positions, provide insights into the economic system’s capacity to foster competitive renewal.

Taken together, these indicators enable us to capture various dimensions of competition and to interpret its evolution.

Full text

  1. 05 November 2026
    Report - The State of Competition in Italy 2026
    PDF 230 KB