Status: 03/08/2023 1:54 p.m
The EU antitrust authorities and the Swiss Competition Commission have launched investigations into leading fragrance and flavor manufacturers. There is a suspicion of anti-competitive agreements.
The world’s leading manufacturers of fragrances and flavors have come under the scrutiny of European competition watchdogs. Both the EU antitrust authorities and the Swiss Competition Commission (Comco) have launched investigations into several companies on suspicion of anti-competitive agreements.
The companies affected are the two Swiss manufacturers Firmenich and Givaudan from Switzerland, Symrise from Germany and International Flavors & Fragrances (IFF) from the USA, said the competition commission.
Raids in several countries
The EU antitrust authority investigated companies and an association in the fragrance industry in several member countries on Tuesday. The authority is investigating the suspicion that there have been collusion in the supply of fragrances and fragrance ingredients that violate antitrust regulations.
The raids were carried out in consultation with the US Department of Justice and the competition authorities in Great Britain and Switzerland. The Commission did not name the companies, the association or the countries.
According to Weko, there were house searches at various company locations because of possible collusion in the fragrance market. “There is a suspicion that they coordinated their pricing policy, prevented competitors from supplying certain customers and restricted the production of certain fragrances,” the Swiss authority said.
“We have nothing to hide”
Givaudan and Symrise have confirmed the investigations against them. Symrise is cooperating fully with the authorities, explained CEO Heinz-Jürgen Bertram: “Because today we think we have nothing to hide and we’ll just wait and see how things develop.” Givaudan also stated that it was working with the antitrust authorities.
According to Symrise, it is number three worldwide in the market for flavors and fragrances. The company’s shares lost around four percent on Wednesday morning, Givaudan gave way by three percent.
Fragrances are used in many different ways, especially in cosmetics and personal care products as well as in detergents and cleaning agents. As part of the investigation, it is to be examined whether there are actually restrictions on competition that are inadmissible under antitrust law.