- Global fragrance firms face new Indian probe over alleged price collusion since 2024
- Companies already investigated in India for anti-poaching employee agreements
- CCI report on price-collusion was recalled due to unredacted commercial secrets
Global fragrance makers Givaudan, Firmenich and International Flavours & Fragrances are facing a fresh antitrust investigation in India over allegations of price collusion, according to a report.
The latest case concerns alleged price-fixing in the Indian fragrance industry since 2024, and this time it comes as the three companies are already facing an ongoing investigation in the country over allegations that they entered into agreements to avoid hiring each other's employees, according to a regulatory document that was reported by Reuters.
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The companies have also faced similar antitrust scrutiny over pricing practices in other markets. They have previously said they are cooperating with global investigations into possible cartel activity.
The Competition Commission of India document, dated July 22, described the new case as relating to “alleged cartelisation in the Indian fragrance industry” involving the three companies, according to the report.
CCI Report Recalled Over Commercial Secrets
According to the CCI's internal July 22 document also reported by Reuters, the regulator had prepared an investigation report containing its findings in the price-collusion case and shared it with the companies in February. However, the report was recalled in July after Givaudan and IFF raised concerns that their commercial secrets had not been properly redacted, the document showed.
The CCI will now have to prepare a revised version of the report with the confidential information appropriately redacted. The process could potentially delay the case, which has already been underway for around two years.
Earlier Antitrust Scrutiny
The latest investigation adds to the regulatory pressure facing the major fragrance companies in India.
The three firms are already under investigation over allegations of labour anti-poaching arrangements. Separately, regulators in other countries have examined the companies over alleged price-related practices.
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In 2023, Swiss and British antitrust authorities said they were investigating the three companies. The European Commission has also said it was examining “possible collusion” involving the supply of fragrances and their ingredients, although it has not publicly named companies as targets.
The investigations do not amount to a finding of wrongdoing, and the allegations against the companies remain subject to regulatory examination.
India's flavours and fragrances market is expected to reach $5 billion by 2033, versus $2.5 billion in 2024, according to Grand View Research, cited by Reuters.
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