The European Commission has carried out unannounced house searches at a number of companies active in the perfume industry. The searches took place in various EU Member States, the Commission itself has announced.
The Commission has sent formal requests for information to several companies. A statement said that there may be cooperation in the supply of fragrances used in consumer products such as personal care and household goods.
Secret cartel formation
The Commission specifically wants to investigate whether there is evidence of cartel formation (where companies agree not to compete with each other, ed.) and practices that hinder the free market. Such agreements are prohibited by European law. Brussels says that the house searches do not mean that the companies are actually guilty.
The EU fine for violating cartel rules can amount to 10 percent of a company’s total annual turnover. Companies involved in secret cartel formation and cooperating with the investigation can obtain immunity or reduced fines.
As part of its investigation, the Commission is in contact with the US, UK and Swiss authorities. It is not known in which EU countries the house searches took place.
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