France fines washing powder firms
FMCG SUPPLIER NEWS
Fin24 - Dec 9th 2011, 08:25
Paris/Frankfurt - France’s competition authority slapped fines totalling $484m on Colgate Palmolive, Henkel and Procter & Gamble for fixing prices of washing powder in France from 1997 to 2004.
Unilever escaped a fine because it initially reported the wrongdoing in 2008, the regulator said on Thursday, adding it took into account the particular seriousness of the practices as well as the various aspects of “undoubted” harm the practices had done to the economy.
Secret talks on pricing took place in hotels and restaurants several times a year, with commercial directors from the groups’ French businesses using the code names ’Hugues’ for Henkel, ’Pierre’ for P&G, ’Laurence’ or ’Louis’ for Unilever, and ’Christian’ for Colgate, the regulator said.
German group Henkel, which was hit with a fine of 92.3 million euros, said it would appeal as it believed the case in France was already covered by European Union sanctions in April this year, which covered price-fixing between 2002 and 2005 and in which it escaped a fine.
“Henkel believes that these practices cannot be distinguished from the rest of the practices and therefore considers that the decision issued today does not draw the right legal conclusions.”
It also said the level of the fine was unfair given how it was the first company to disclose that the matter had a European angle.
The fines come just weeks after Britain’s Reckitt Benckiser was fined $32 million euros in Germany for fixing prices on dishwashing and laundry products in a separate case in which Henkel acted as whistleblower.
Related News
SABMiller: Stock hit by Unilever data, strike
14/10/2013 - 10:30
SABMiller suffered its biggest weekly decline in more than two years last week as a strike at its South African beer operations continued and Unilever said sales growth slowed in emerging markets.
Unilever cautious on emerging markets
29/07/2013 - 08:18
London - Unilever has become more cautious about prospects for emerging markets, a big growth driver for the consumer goods company, which reported underlying second-quarter sales growth shy of market expectations.
French consumer morale hits record low
01/07/2013 - 11:38
Paris - French consumer confidence has hit an all-time low, the latest survey showed on Thursday, just as the state auditor warned that a likely economic contraction would knock the government off course on this year's deficit reduction target.
Unilever’s sales grow 4.9%
26/04/2013 - 10:32
Unilever’s breadth of businesses and markets would enable it to ride out the tough environment in Europe, the Anglo-Dutch consumer goods company said yesterday as it reported weaker-than-expected first-quarter growth.
IBM looks to cut 1,400 jobs
22/04/2013 - 09:08
Technology company IBM is mulling up to 1,400 job cuts in France over the next two years, three trade-union representatives told Reuters on Thursday.
