COMPETITION The total amount reached 192.7 million euros. Lactalis announced it would appeal the decision of the Competition Authority …
Eleven manufacturers of fresh dairy products, Senagral (Senoble) Novandi (Andros) and Lactalis have been fined a total of € 192.7 million for agreement wholesale prices and tenders on retail brands (MDD), announced Thursday the Competition Authority. This is the culmination of a three-year investigation began after the revelations of General Mills Yoplait.
“This is one of the biggest decisions “in terms of the amount of fines set by the Authority since its inception, said Thierry Dahan, vice president of the Authority, on Thursday at a press conference, speaking of a” highly organized cartel “.
Penalties reduced for Yoplait and Senagral
The heaviest fine was attributed to Lactalis Nestlé with 56.1 million. Yoplait has been exempted him fine for the first denounced the cartel under the leniency procedure. Senagral also benefited from a reduction in fines as the second leniency applicant. Instead of 101.3 million euros, the manufacturer was imposed a penalty of $ 46 million.
In addition, all companies set because, with the exception of the Laiterie de Saint Malo (which fined 300,000 euros), recognized the facts. They therefore benefited from penalty reductions.
Lactalis announced Thursday he would appeal the decision of the Competition Authority regarding the amount of the fine, considering it sanction “extremely severe.”
A major cartel
These large fines are proportional to the magnitude of the cartel who practiced agreements on prices and volumes for six years. The Competition Authority denounced “serious practices that have disrupted the functioning of the market for several years.” From December 2006 to February 2012, eleven companies were concerting the rates charged to large retailers such as Carrefour, Leclerc and Intermarché, who regularly tenders for their own brand of fresh dairy products.
What harm to consumers?
Since the agreement was based on wholesale prices, it is not easy to assess the damage suffered bullet by consumers. The premium charged by the cartel from distributors was estimated between 6 and 10% by the Competition Authority. Distributors have they passed the increase on the price on the shelf? In the absence of price observations over this period, it is difficult to determine. The Competition Authority emphasizes, however, that the products concerned are common products, moreover distributors brand and therefore entry, to which consumers are turning to price reasons.
The full text of the decision was posted on the website of the Competition Authority:
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