France investigates consumer goods cartel claims

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A shopper picks up a box of PG Tips tea bags at a Sainsbury's supermarket in London February 6, 2008. PG Tips is a brand owned by consumer products company Unilever. French antitrust officials are investigating several multinational personal and household goods companies on suspicion they operated an illegal cartel, Le Figaro newspaper reported on Wednesday. REUTERS/Luke MacGregor

A shopper picks up a box of PG Tips tea bags at a Sainsbury's supermarket in London February 6, 2008. PG Tips is a brand owned by consumer products company Unilever. French antitrust officials are investigating several multinational personal and household goods companies on suspicion they operated an illegal cartel, Le Figaro newspaper reported on Wednesday.

Credit: Reuters/Luke MacGregor

PARIS | Wed Feb 27, 2008 3:44pm GMT

PARIS (Reuters) - French antitrust officials are investigating several multinational personal and household goods companies on suspicion they operated an illegal price-fixing cartel, some of the companies involved said on Wednesday.

The inquiry involves groups such as Procter & Gamble, Colgate-Palmolive, Unilever and Reckitt Benckiser, which confirmed they were involved in the investigation but declined to comment on details.

Le Figaro newspaper reported the inquiry covered nine big consumer goods companies, including privately-owned SC Johnson, that all were suspected of sharing market share and price data in 2004 and 2005 and that their offices in France had been raided.

"We've been collaborating with investigators and to date there has been no formal request sent by the authorities to P&G," said P&G spokeswoman Robyn Schroeder.

A Unilever spokesman in London said: "We are aware of the on-going investigation, with which we are co-operating fully. But we have not been formally notified of the precise nature of the inquiry, so cannot comment further."

Reckitt and Colgate confirmed they were involved.

"It is Colgate-Palmolive's policy to comply with all laws, including competition law ... in keeping with our policy, Colgate has co-operated with the French authorities," the group said.

Share prices in European companies were little affected with Unilever up 1.3 percent at 16.07 pounds and Reckitt 1.3 percent ahead at 27.89 pounds by 3:10 p.m.

Le Figaro said the inquiry was on hold pending the outcome of a legal challenge to the case mounted on procedural grounds. A ruling is expected in the coming weeks, it said.

A spokeswoman for France's competition authority was not immediately available to comment, while a spokesman for consumer goods association ILEC, which Le Figaro said was also raided, was also not immediately available.

(Reporting by Nick Antonovics, additional reporting by David Jones in London and Brad Dorfman in Chicago, editing by Will Waterman and David Hulmes)

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