Proceedings against Henkel Italia, Unilever Italia Holdings, Colgate-Palmolive, Procter & Gamble Italia, Procter & Gamble Holding and Procter & Gamble, L’Oréal Italia, Sara Lee Household & Body Care Italy and Reckitt-Benckiser Holdings (Italia).

The Italian Competition Authority, at its meeting on 12 June 2008, decided to open an investigation into a number of companies, including some multinationals, operating in the cosmetics industry. The investigation is to determine whether the companies set up an anti-competitive arrangement by exchanging information and coordinating resale prices.

The companies involved were notified of the action during the course of a number of inspections carried out in collaboration with the Guardia di Finanza's Special Units. The companies in question are the main manufacturers of cosmetics distributed via retail outlets: they are Henkel Italia, Unilever Italia Holdings, Colgate-Palmolive, several companies of the Procter&Gamble group (Procter & Gamble Italia, Procter & Gamble Holding and Procter & Gamble), L’Oréal Italia, Sara Lee Household & Body Care Italy and Reckitt-Benckiser Holdings (Italia).

The investigation was begun following a report received by the Authority within the clemency program foreseen by the law. The report claims these companies, all active in the manufacture and retailing of cosmetic products, during meetings at the Centromarca association (Associazione Italiana dell'Industria di Marca, or Italian Association of Branded Products Industries), at least in the period January 2005/2007, exchanged information on planned price increases and the status of negotiations with distributors, general indications as to discounts and bonuses offered to distributors, as well as the effects expected from new entries into the market. Furthermore, the information received indicates that these companies jointly put pressure on the distributors, by way of their industry association, to obtain a generalized increase in retail prices.

The sector involved in the alleged arrangement is that of cosmetic products (including hair, body and oral hygiene products). In 2006, the overall turnover of the national cosmetics industry (including exports) was around Euro 8 billion, 2.9% up on the preceding year.

This proceeding must be completed by 12 June 2009.

Rome, 19 June 2008