The Dax group defends itself against cartel allegations.
(Photo: Symrise)
Dusseldorf The fragrance and aroma manufacturer Symrise is defending itself in court against the ongoing antitrust investigations. The Dax group has applied to the second highest European court in Luxembourg to annul the decision on the house searches. “We are now firmly assuming that Symrise cannot be the main goal of the investigations that have been initiated,” said a Symrise spokesman on Monday.
Symrise and its three major competitors are suspected of coordinating their pricing policies and preventing smaller competitors from supplying certain customers. At the beginning of March, the authorities launched investigations, and the Symrise headquarters in Holzminden, Lower Saxony, were also searched.
Along with the Swiss companies Firmenich and Givaudan and the US manufacturer International Flavors & Fragrances (IFF), Symrise is one of the four major fragrance and aroma manufacturers. Together, these corporations control more than 60 percent of the global market, which is around 39 billion euros. With a market share of twelve percent, Symrise is number three in the industry.
Consumers come into contact with manufacturers’ products 20 to 30 times a day. These supply all major food or cosmetics manufacturers such as Nestlé or Henkel. Fragrances and flavorings ensure that toothpaste tastes like mint or ice cream like vanilla, or are used in creams and detergents.
Symrise considers the cartel investigations to be illegal. An appeal was therefore lodged with the General Court of the European Union (EuG) in mid-May, a Symrise spokesman said on Monday. For example, the EU Commission did not adequately explain what information it has and why Symrise could be involved in activities that violate antitrust law.
Investigations in Switzerland, the EU, Great Britain and the USA
The group also complained that the subject and purpose of the search were not described in detail. In mid-June, the EU Commission searched various documents in the presence of Symrise lawyers “and only kept a marginal number of documents,” the spokesman said. All other viewed electronic documents were deleted again.
The Swiss Competition Commission (Comco) published the investigations at the beginning of March. In addition to Weko, the EU Commission and the antitrust authorities in the USA and Great Britain are also investigating. The investigation can take up to two years. Until then, the presumption of innocence applies.
Symrise had repeatedly defended itself against the allegations. After the investigation became known, Symrise boss Heinz-Jürgen Bertram said: “We are not affected by the allegations and have nothing to hide.” In April, Bertram then criticized the fact that the authorities had not informed the company of the specific allegation even when asked.
Symrise is considered the economic miracle of the 2010s. Since 2006, sales have grown by almost eight percent a year on average, and the group is highly profitable with a margin of around 20 percent. In 2021, the company was promoted to the leading index Dax.
With agency material.
More: Why the unknown Dax newcomer Symrise has been growing for years