© DR
France’s competition authority has fined ten dairy companies more than €190m, after details emerged of a “yogurt cartel” that engaged in widespread price fixing.
Autorité de la Concurrence has severely criticised the actions of the group of manufacturers, issuing fines ranging from €300,000 to €56.1m. “The centre of gravity of the agreement,” it added, “consisted of four industry leaders: Yoplait, Novandia, Lactalis and Senoble. The activity spanned a range of fresh dairy categories, with the total sum of fines issued standing at €192.7m.
Yoplait, one of the group’s ringleaders, managed to escape penalties after it used the authority’s leniency procedure to blow the whistle on the illegal activity. The procedure allows companies who participate in price fixing to obtain full or partial exemption for their actions, if they are among the first to disclose the activity to the authority.
The investigation heard that the eleven companies organised secret meetings, telephone exchanges and kept a diary of their decisions. It also found that the group agreed to establish a 3% increase on desserts, 4% increase on yoghurt and 5% increase on fresh cheese and cream, effective from October 2007.
The authority concluded: “This cartel was widespread since it concerned the whole country, and the manufacturers of fresh dairy private label products involved represent more than 90% of the market concerned. Its secrecy and its sophisticated implementation (regular change of venue, dedicated mobile phones, private meetings at the home of one of the participants) aggravate the practices committed. Moreover, the products are common products, to which consumers are turning for reasons of price and for which they are relative captives.
“The sanctions were proportionate to the seriousness of the facts, to the extent of the damage caused to the economy, and have been adapted according to… the individual situations of the businesses.”
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