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By
AFP
Published
May 31, 2010
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Cosmetic-makers flout anti-cartel rules

By
AFP
Published
May 31, 2010

GENEVA, May 28, 2010 (AFP) - Cosmetics and perfume-makers have flouted Swiss anti-cartel rules and should be fined up to 25.5 million francs (17.9 million euros, 22.2 million dollars) for price fixing, regulators said on Friday 28 May.



The investigative arm of Switzerland's Competition Commission (COMCO) said it had carried out a probe of companies in the Association of Manufacturers, Importers and Distributors of Cosmetic Products and Perfumes, including Parfums Christian Dior AG, Chanel Geneve SA and L'Oreal Produits de Luxe Suisse SA, and that it had found evidence of price-fixing.

"The indications became clearer during the course of the investigation that the concerned companies were able to harmonise their prices and cement their part of the market thanks to an information exchange," the COMCO secretariat said.

"The secretariat qualifies the behaviour of these companies as an illicit accord on prices and quantities," it added.

The secretariat recommended that COMCO impose fines between 17,000 and 25.5 million francs, with the level calculated according to the sales generated by each company and the severity of the offence.

A spokeswoman from L'Oreal rejected the allegations.

"L'Oreal Produits de Luxe Suisse SA and YSL Beaute Suisse SA deny any breach of the Cartel Act that could have been intended to distort competition," said the spokeswoman.

She added that the companies "reject the allegations made against them and will respond to the COMCO Secretariat in due course after receiving and analysing the proposed decision concerning them."

COMCO is expected to make a final decision following hearings.

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