New Delhi: Major Global Fragrance Companies Under Investigation Again
Givaudan, Firmenich, and International Flavors & Fragrances (IFF), three leading names in the global fragrance industry, are facing a new antitrust investigation in India, as per a document obtained by Reuters.
The investigation is focused on allegations of price collusion that date back to 2024, according to a source familiar with the matter. This inquiry follows an ongoing probe into claims that the companies had anti-poaching agreements regarding labor.
These companies have previously encountered similar scrutiny over the prices they set for customers in international markets. They have stated their willingness to cooperate with global inquiries aimed at identifying cartel behavior.
The document from the Competition Commission of India (CCI), dated July 22, categorizes the new case as involving “alleged cartelization in the Indian fragrance industry” by the three firms.
Neither Givaudan, IFF, nor DSM-Firmenich—formed through the merger of Dutch firm DSM and Firmenich in 2023—responded to requests for comments on the investigation.
In 2023, antitrust regulators in Switzerland and the UK announced they were looking into the practices of these companies. The European Commission is also examining potential collusion concerning the supply of fragrances and their ingredients, but it has yet to name any specific companies involved.
Confidential Report Recalled
In India, details about price-fixing investigations are typically kept under wraps while they are ongoing. In this instance, the CCI drafted an investigative report with its findings and shared it with the companies in February. However, this report was later retracted in July after Givaudan and IFF expressed concerns that their sensitive business information had not been adequately protected.
As a result, the CCI will need to revise the report, taking care to redact confidential details, which could extend the timeline of this two-year-old case.
According to Gautam Shahi, an antitrust lawyer in India, this situation is concerning for the CCI. He noted that losing key commercial data could negatively impact competition in the market.
Looking ahead, the flavors and fragrances market in India is projected to grow significantly, reaching $5 billion by 2033, up from $2.5 billion in 2024, as estimated by Grand View Research.
