L'Oreal, cosmetics makers fined EU 10 million by German agency

German units of L'Oreal SA, Clarins SA, Christian Dior SA and Chanel SA were among nine cosmetics companies fined a total of 10 million euros ($15.7 million) by Germany's antitrust regulator for sharing market information.

The companies exchanged information since 1995, sharing data such as their plans to raise prices, the German Federal Cartel Office said in a statement today. The fines ranged from 250,000 euros to 2.1 million euros.

“Because of the exchange of information, there's the danger that cosmetic companies coordinate their market behavior,” the statement said.

The Cartel Office in Bonn has been targeting anticompetitive behavior amid rising prices for consumer products. In February, the regulator fined the German units of three companies a total of about 37 million euros over claims they fixed the prices of detergents and toothpaste. Last week it searched coffee companies.

German cosmetics units of Procter & Gamble Co., Coty Inc., Estee Lauder Cos., Shiseido Co. and PPR SA, were also among the companies fined, the office said. Nine current or former managers were also penalized, the office added.

(Published by Bloomberg - july 10, 2008)