Multi-million fines imposed on manufacturers of drugstore products on account of anti-competitive information exchange

The Bundeskartellamt has concluded its proceedings against several manufacturers of branded drugstore products. The authority has imposed fines of another 39 million Euros on six companies, the trademark association (Markenverband e.V.) and their representatives on account of anti-competitive information exchange. In previous proceedings, nine companies had already been fined a total of 24 million Euros (cf. Bundeskartellamt press releases of 20 February 2008 and 23 November 2011).

Andreas Mundt, President of the Bundeskartellamt: "During official association meetings, leading manufacturers of branded goods had for years exchanged information about upcoming price increases, new demands for rebates from the retail trade and the state of negotiations with retailers. This is competition-relevant information which must not be exchanged. Competition is impaired by such practices, even if they do not constitute classical hardcore agreements such as a price agreement."

Between 2004 and 2006, information was exchanged at regular meetings of the trademark association's working group on "body care, cleaning agents and detergents". The participants of these meetings were manufacturers of branded drugstore products and included all the leading suppliers in Germany of branded body care products, cleaning agents and detergents.

The proceedings were triggered by a leniency application by Colgate Palmolive GmbH, against whom no fine was imposed in accordance with the leniency programme. Between 2008 and the end of 2011, cartel proceedings against nine of the companies had already been concluded by settlement with non-appealable fine decisions (Coty Deutschland GmbH, delta pronatura Dr. Krauß & Dr. Beckmann KG, Henkel Wasch- und Reinigungsmittel GmbH, Johnson & Johnson GmbH, SC Johnson GmbH, Sara Lee Deutschland GmbH, Schwarzkopf & Henkel GmbH, Reckitt Benckiser Deutschland AG, Unilever Deutschland GmbH). With today's orders imposing fines on six further companies the proceedings have now been concluded. The six companies are Beiersdorf AG (which already received its order imposing the fine in the first half of 2012), Erdal-Rex GmbH, Gillette Gruppe Deutschland GmbH & Co. oHG, GlaxoSmithKline Consumer Healthcare GmbH & Co. KG, L’Oréal Deutschland GmbH and Procter & Gamble GmbH.

The trademark association was also fined for supporting the information exchange.

A settlement was agreed with Beiersdorf AG whose fine decision is already final. The other decisions can be appealed to the Düsseldorf Higher Regional Court.