EU Cleans Up Soap Business
Posted: 13th April 2011
Soap power giants Proctor and Gamble and Unilever have been fined more than £280 million by the European Commission after being found guilty of price fixing. The pair were investigated after a ‘whistleblower’ informed on their collaboration in setting prices.
The two companies admitted running a cartel on soap powder prices in several EU countries between 2002 and 2005.
EU competition law is the strongest in the world and companies which adopt anti-competitive prices are routinely heavily fined when caught. In the UK, competition law is enforced by the Office of Fair Trading (OFT). The OFT recently fined Renkitt Benckiser more than £10 million for abusing its dominant position as a supplied of Gaviscon.
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