The French competition regulator fined The Procter & Gamble Co., Coty Inc., Chanel SA and their wholesale importers for setting up exclusive import agreements for distribution of perfumes and cosmetic products in French territories.
Autorité de la concurrence said the companies maintained or established exclusive import agreements in Guadeloupe, Martinique, French Guiana and La Réunion after a law prohibiting such deals came into effect in March 2013.
"These practices hindered the growth of competing wholesale importers and deprived retailers of access to competing wholesalers for their supplies of perfumes and cosmetics. They resulted in increased costs for retailers and, consequently, the prices of perfumes and cosmetics for consumers in French overseas territories," the regulator said.
The watchdog fined the companies and importers, Parfumerie d'Outremer and Sodibel, a combined €176,000, adding that the amount takes into account that "all the companies concerned did not contest the facts and sought to benefit from the settlement procedure."
The regulator said importer Parfumerie d'Outremer maintained its agreement with P&G until Feb. 25, 2014, and entered into a new agreement with Coty from Sept. 26, 2016, to Feb. 1, 2018, for shower gels, aftershave, eau de toilette and deodorants. Sodibel maintained agreement with Chanel and Coty for makeup items until Jan. 23, 2014.
The regulator imposed a fine of €40,000 on P&G, €32,000 on Coty, another €13,000 on Coty and Chanel for makeup items, €68,000 on Parfumerie d'Outremer and €23,000 on Sodibel.
P&G, Coty and Chanel did not immediately respond to S&P Global Market Intelligence's requests for comment.
