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.
Competition law affects small businesses as well as large ones. For more information on competition law, click here. Call us for detailed advice on how to comply with competition law.