The EU, Great Britain and Switzerland suspect a fragrance cartel, Givaudan confirms cooperation

Authors: Foo Yun Chee and Oliver Hirt

BRUSSELS/ZURICH (Reuters) – Swiss perfume and fragrance maker Givaudan said on Tuesday it was under investigation by European Union and Swiss antitrust authorities, after the European Union announced earlier it had raided several companies over suspicions of a cartel involving the supply of perfumes and fragrance ingredients.

The UK Competition Agency has also opened an investigation into the same sector.

“I can confirm that we are part of an industry investigation by European and Swiss authorities. As a good corporate citizen, Givaudan is fully cooperating with the authorities,” the spokesman said.

The European Commission did not name the companies, associations or EU countries where the dawn raids took place, in line with its usual policy. It said the fragrances are used in consumer products such as household and personal care products.

“The Commission is concerned that companies and associations operating in the perfume industry worldwide may have breached EU antitrust rules that prohibit cartels and restrictive business practices,” the EU executive body said in a statement.

Under EU rules, if evidence of a criminal offence is presented, the EU’s antitrust enforcement authority can enter a company’s offices, examine and make copies of documents relating to the company’s activities, and question employees.

The EU competition law enforcer said it had contacted the US Department of Justice and competition agencies in the UK and Switzerland and that the raids were carried out in consultation with them.

The UK Competition and Markets Authority announced the launch of an investigation and set a deadline of early 2024 to analyze and review information collected from companies.

Companies face fines of up to 10% of their global turnover for violating EU antitrust rules.

(Reporting by Foo Yun Chee; editing by Grant McCool and Aurora Ellis)