On 26 August 2009, the Italian Competition Authority found that the defendant had committed unfair commercial practices by delaying, without justification, the application of legal provisions enabling loan subscribers to redeem mortgage loans. On that basis, a fine of 180.000 Euros was imposed upon the defendant.
Following the appeal lodged by the defendant, the Administrative Court of first instance decided to uphold its requests as regards the amount of the fine, and rejected the appeal on the remaining part.
The Administrative Court of first instance decision was appealed before the Supreme Administrative Court ("Council of State" or "Consiglio di Stato") by both the defendant and the Italian Competition Authority, which asked for its partial annulment.
In the appeal, the defendant argued that its practices after the conclusion of mortgage contracts, cannot constitute "commercial practices" in the sense of the UCP Directive as these practices are not aimed at the sale of a product and as they do not constraint consumers economic freedom, nor their right to take informed decisions.
On the other hand, the Italian Competition Authority claimed that the Administrative Court of first instance incorrectly ordered a new determination of the amount of the fine. In this respect, the Authority argued that, in determining the amount of the fine, it took in due consideration the measures adopted by the bank to address its preliminary concerns and that it had focused on the gravity and duration of the infringement.