Bundeskartellamt concludes proceedings against consumer goods manufacturers on account of illegal exchange of information and imposes multi-million fine on Nestlé

Today the Bundeskartellamt has concluded a series of proceedings against consumer goods manufacturers on account of illegal exchange of competition-relevant information. The proceedings were concluded with fines totalling approx. 20 million euros imposed on Nestlé Deutschland AG. In 2011, the authority had already imposed fines on other companies involved, in this case totalling approx. 38 million euros. These were Kraft Foods Deutschland GmbH, Unilever Deutschland Holding AG and Dr. August Oetker Nahrungsmittel KG (cf. Bundeskartellamt press release of 17 March 2011). These fines have meanwhile become final. The proceedings were triggered by a leniency application filed by Mars GmbH on which no fine was imposed in accordance with the Bundeskartellamt's leniency programme.

Andreas Mundt, President of the Bundeskartellamt: "Over several years, high-ranking sales executives met regularly in a discussion group and informed each other on the state of negotiations between their companies and several retailers. In some cases, they also exchanged information on planned price increases. Such business details are normally treated as highly confidential. Although such forms of information exchange do not constitute typical cartel agreements, this type of conduct restricts competition considerably."

In particular, the product areas of confectionery, hot beverages, pet food and frozen pizzas were affected. The exchange of information was likely to have a decisive influence on the companies' market conduct. In one specific case, Nestlé and Kraft explicitly agreed on a price increase for so-called 'Family-Cappuccino', an instant capuccino product line.

Nestlé was granted a reduction of its fine for its cooperation in clarifying the allegations.

The fine against Nestlé is not yet final; the order imposing the fine can be appealed to the Düsseldorf Higher Regional Court. Logo: Offene Märkte | Fairer Wettbewerb

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