Procter & Gamble (P&G), Chanel and Coty have been called out for setting up exclusive import agreements in the Antilles, Guyana and Réunion Island, with the France competition authority handing down fines totally 176,000 euros, according to WWD.com.
The cosmetics and personal care giants were among several companies that were in breach of the Lurel Law, which prohibits such agreements to French oversees territories. Other companies fined include Gucci, Puma, Dolce & Gabbana, Calvin Klein, Marc Jacobs, Balenciaga, Bourjois and Tiffany.
Taking to a statement, the authority said, “Procter & Gamble, Coty and Chanel and their wholesale importers maintained or established, after the entry into force of the Lurel Law, exclusive importation for the distribution of perfumes and cosmetics products in Guadeloupe, Martinique, French Guyana and La Réunion.”
It continued, “These practices hindered the growth of competing wholesale importers and deprived retailers of access to competing wholesalers for their supplies of perfumes and cosmetics. They resulted in increased costs for retailers and, consequently, the prices of perfumes and cosmetics for consumers in the French overseas territories.”