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Friday, June 26, 2015Authorities

Coordinated increases of prices: Belgium sanctions cosmetic companies

© CosmeticOBS-L'Observatoire des Cosmétiques

The Investigation and Prosecution Service of the Belgian Competition Authority sanctions 18 companies that took part in coordinated increases of end-consumer prices for drugstore, perfumery and hygiene products between 2002 and 2007 in Belgium, and imposes fines amounting to 174,000,000 EUR. Among them: Henkel, L’Oréal, Procter & Gamble, Reckitt Benckiser, and Unilever…

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The infringement consisted of the repeated organization, at retail level, on the whole of the Belgian territory, of coordinated increases of end-consumer prices of branded DPH (drugstore, perfumery and hygiene) products of the suppliers involved.

The coordinated price increases concerned a large number of branded DPH products sold in the retail in Belgium and followed each other repeatedly throughout the period of infringement which lasted between 2002 and 2007, although the duration of the participation in the infringement varied between the companies involved.

The 18 companies concerned are important actors of the Belgian retail (Carrefour, Colruyt, Cora, Delhaize, Intermarché, Makro and Mesdagh) and suppliers who together represent a large part of DPH products sold (Beiersdorf, Bolton, Belgium Retail Trading, Colgate-Palmolive, DE HBC Belgium, GSK, Henkel, L'Oreal, Procter & Gamble, Reckitt Benckiser (Belgium) and Unilever).

The practice at issue was denounced in late 2006 by Colgate-Palmolive that benefits, as the first leniency applicant, of a full immunity from fines in this case. Subsequently, GSK and Reckitt Benckiser (Belgium) also applied for leniency and were granted a reduction of the otherwise applicable fines.

Details of the fines for cosmetic companies:
• Colgate-Palmolive: 0 € (Reduction under the Leniency program: 100%)
• GSK: …

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