Unilever and Reckitt Benckiser must pay £231m for fixing product prices in France

Persil owner Unilever and Dettol maker Reckitt Benckiser have both been fined a combined £231million for fixing the prices of products in France.

The French competition regulator issued its biggest-ever fines, totalling £748million, to more than ten firms following an investigation into the rigging of two product areas between 2003 and 2006.

These are the household cleaning market, which involves disinfectant, and the personal care market, which involves soaps and products that eradicate unwanted hair.

Penalty: Persil owner Unilever has been fined by the French competition regulator

Penalty: Persil owner Unilever has been fined by the French competition regulator

The regulator believes firms including L’Oreal, Colgate-Palmolive, Gillette, and Procter & Gamble, all conspired to agree ‘price evolutions’.

Cosmetic firm L’Oreal received the biggest individual fine worth £149million, and it, along with Unilever, said it would appeal against the decision.

L’Oreal said it was ‘surprised by this decision and the amount of the fine which are totally out of proportion’.

Unilever said it, ‘will appeal against the decision and considers the sanction imposed to be totally unjustified given Unilever’s comparatively limited level of involvement in any exchanges and the absence of effects for the consumer.’

Both Unilever and Reckitt Benckiser have a track record in anti-competitive behaviour.

In 2011, Unilever was fined £81million for colluding over washing powder prices in eight countries, according to the European Commission.

In March, Reckitt agreed to pay the NHS £90million after it was accused of profiting from its indigestion treatment Gaviscon after the product’s patent had expired.

Last month, it admitted that its office in America had been raided by the US Attorney in connection with more alleged anti-competitive practices.

On its latest financial penalty it said: ‘A provision for the expected fine in relation to this matter was made in 2013 and we do not expect any further provision will be needed.’

 

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