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Share Price: 1,773.50
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Change: 12.50 (0.71%)
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Germany fines consumer goods firms in information-sharing probe

Mon, 18th Mar 2013 19:12

FRANKFURT, March 18 (Reuters) - Germany's cartel office saidit would fine a number of consumer goods companies 39 millioneuros ($51 million), including L'Oreal and Procter &Gamble in Germany, for taking part in anti-competitivesharing of information.

The cartel office said the companies had shared informationbetween 2004 and 2006 during working groups on personal care,laundry and cleaning products.

The information exchanged included upcoming price increases,discounts demanded by retailers and negotiations with retailers.

The probe was triggered by Colgate-Palmolive, whichescaped fines for its role as whistleblower.

The watchdog had already fined nine companies a total of 24million euros as part of the same investigation in 2008 and2011.

The companies also fined on Monday were Beiersdorf, the German units of Gillette - also part of P&G - andGlaxoSmithKline, as well as Erdal-Rex GmbH.

The Markenverband association of German brands, which ranthe regular working groups, was also fined for supporting theexchange of information.

L'Oreal and P&G both said they would appeal the decision.

"L'Oreal Germany did not take part in any anti-competitiveexchange of information," the company said in a statement.

A P&G spokeswoman said one of the company's key principleswas to work within the letter of the law wherever it operated.

GlaxoSmithKline in Germany and Erdal-Rex, which makescleaning products under the Frosch brand, were not immediatelyavailable for comment. The Markenverband association said itwould review the decision before deciding whether to appeal.

Beiersdorf has already agreed a settlement with theauthorities and so cannot appeal.

Those companies previously fined as part of the sameinvestigation include Henkel and Reckitt Benckiser.

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