EU fines Unilever, Procter & Gamble in detergent cartel

European Union regulators have fined consumer products companies Procter & Gamble and Unilever a total of US$456 million for price-fixing on powdered laundry detergent together with Henkel in eight EU countries.

European Union regulators have fined consumer products companies Procter & Gamble and Unilever a total of US$456 million for price-fixing on powdered laundry detergent together with Henkel in eight EU countries.

U.S.-based Procter & Gamble has to pay US$306 million, while British-Dutch company Unilever NV was fined US$150 million. Both companies had their fines reduced because they agreed to settle the case with the Commission and co-operating with the investigation.

The three companies are the leading producers for washing powder in Europe, the Commission said. Unilever makes laundry detergents including OMO and Radiant; Procter & Gamble owns the Ariel and Tide brands; while Henkel produces Persil.

The cartel was started when the companies were in joint talks on how to cut down on packaging, said the EU’s Competition Commissioner Joaquin Almunia.

“They used this environmental initiative to agree on market share and to agree on not reducing the prices even if the packages were smaller,” Almunia said.

The cartel lasted from Jan. 2002 until March 2005 and covered Belgium, France, Germany, Greece, Italy, Portugal, Spain and the Netherlands, the Commission said.

Unilever said the fine falls below provisions already made in the company’s 2010 results. “Unilever believes it is in the best interests of the company for Unilever and the Commission to have reached this settlement,” it said in a statement.

Brands Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

Diageo’s ‘Crown on the House’ brings tasting home

After Johnnie Walker success, Crown Royal gets in-home mentorship

Survey says Starbucks has best holiday cup

Consumers take sides on another front of Canada's coffee war

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Heart & Stroke proclaims a big change

New campaign unveils first brand renovation in 60 years

Best Buy makes you feel like a kid again

The Union-built holiday campaign drops the product shots

Volkswagen bets on tech in crisis recovery

Execs want battery-powered cars, ride-sharing to 'fundamentally change' automaker

Simple strategies for analytics success

Heeding the 80-20 rule, metrics that matter and changing customer behaviors

Why IKEA is playing it up downstairs

Inside the retailer's Market Hall strategy to make more Canadians fans of its designs