Now Reading: India probes Givaudan, Firmenich, IFF for price collusion
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India probes Givaudan, Firmenich, IFF for price collusion
Indian antitrust authorities have launched a fresh investigation into global fragrance makers Givaudan, Firmenich, and International Flavors & Fragrances for alleged price collusion since 2024, according to a confidential Competition Commission of…
Indian antitrust authorities have launched a fresh investigation into global fragrance makers Givaudan, Firmenich, and International Flavors & Fragrances for alleged price collusion since 2024, according to a confidential Competition Commission of India document dated July 22. The new case adds to an existing probe into accusations that the three companies struck labour anti-poaching deals.
The CCI drafted an investigation report on the price-fixing allegations and shared it with the companies in February, but was forced to recall it in July after Givaudan and IFF complained their commercial secrets were improperly redacted. The watchdog must now redraft the report with sensitive data properly masked, potentially slowing the two-year-old case. India's flavours and fragrances market is projected to reach $5 billion by 2033. The companies have said they are cooperating with global anti-cartel investigations.
Indian Opinion Analysis
The Competition Commission of India operates under the Competition Act, 2002, which empowers it to probe cartels and impose penalties of up to three times a company's profit or 10 percent of its turnover. A procedural slip like this, a recall over unredacted secrets, is rare and suggests the CCI's investigation machinery is stretched. The three firms control a large share of the global flavours and fragrances supply chain, supplying ingredients to Indian FMCG and food companies. If price collusion is proved, it could raise input costs for local manufacturers and ultimately consumers in the Rs 20,000-crore domestic market. The CCI must now redo its investigation report, which could delay a final order by months. The next concrete milestone is the release of the redrafted report, likely in late 2025.
Source: timesnownews.com
This brief was synthesised by AI from the source linked above.
