Global fragrance makers Givaudan, Firmenich and International Flavours & Fragrances are facing a fresh antitrust investigation in India over allegations of price collusion, according to a regulatory document reported by Reuters. The Competition Commission of India document dated July 22 described the new case as relating to 'alleged cartelisation in the Indian fragrance industry' involving the three companies. This latest case concerns alleged price-fixing in the Indian fragrance industry since 2024, adding to the regulatory pressure facing these major fragrance companies in India. The investigation follows an ongoing investigation into accusations that the companies struck labour anti-poaching deals, as reported by Reuters.
According to the CCI's internal July 22 document reported by Reuters, the regulator had prepared an investigation report containing its findings in the price-collusion case and shared it with the companies in February. However, the report was recalled in July after Givaudan and IFF raised concerns that their commercial secrets had not been properly redacted. The CCI will now have to prepare a revised version of the report with the confidential information appropriately redacted, which could potentially delay the case that has already been underway for around two years. As noted by antitrust lawyer Gautam Shahi from Dua Associates, 'From a systemic perspective this will be of concern to CCI. Loss of relevant commercially sensitive data may harm competition in the market.'
The latest investigation adds to the regulatory pressure facing the major fragrance companies in India. The three firms are already under investigation over allegations of labour anti-poaching arrangements, as reported by Reuters. Separately, regulators in other countries have examined the companies over alleged price-related practices. In 2023, Swiss and British antitrust authorities said they were investigating the three companies, while the European Commission has also said it was examining 'possible collusion' involving the supply of fragrances and their ingredients, although it has not publicly named companies as targets. The companies have previously said they are cooperating with global investigations into possible cartel activity.
The investigations do not amount to a finding of wrongdoing, and the allegations against the companies remain subject to regulatory examination. According to Grand View Research cited by Reuters, India's flavours and fragrances market is expected to reach $5 billion by 2033, versus $2.5 billion in 2024. The companies have previously said they are cooperating with global investigations into possible cartel activity, with the allegations against them remaining subject to ongoing regulatory examination. The case highlights the growing scrutiny of global fragrance companies across multiple jurisdictions.
