German C&T companies latest hit by anti-competition fines

Published: 11-Jul-2008

The German Federal Cartel Office (BKA) has imposed fines and penalties of around €10m on a number of cosmetics companies for the systematic exchange of information. The cosmetics products were all market selectively through perfumeries in an operation involving a total of nine companies and 13 former or current managing directors. The companies are German subsidiaries of leading groups comprising Chanel, Clarins, Cosmopolitan Cosmetics Prestige (now P&G Prestige Products), Coty Prestige Lancaster, Estée Lauder, L'Oréal, LVMH Parfums & Kosmetik, Shiseido and YSL Beaute.


The German Federal Cartel Office (BKA) has imposed fines and penalties of around €10m on a number of cosmetics companies for the systematic exchange of information. The cosmetics products were all market selectively through perfumeries in an operation involving a total of nine companies and 13 former or current managing directors. The companies are German subsidiaries of leading groups comprising Chanel, Clarins, Cosmopolitan Cosmetics Prestige (now P&G Prestige Products), Coty Prestige Lancaster, Estée Lauder, L'Oréal, LVMH Parfums & Kosmetik, Shiseido and YSL Beaute.

The BKA says that these companies "within a closed circle" exchanged details of internal company data since at least 1995. They reported detailed sales data to the moderator of the circle, described by the BKA as "a former L'Oréal employee", on a quarterly basis as well as exchanging information on new product launches, price increases and promotions along with comments on the perfumeries and other "elements of marketing strategy".

The circle comprised all the key players in the German cosmetics sector. The fines imposed by the BKA, related to the sales volume of the individual companies, are between €250,000 and €2.1m. The companies will be able to appeal against the fines.

You may also like