Ferrero Faces Price-Fixing Inquest

The report is the result of an investigation that began two years ago in Germany, where the competition authorities investigated the commercial behaviour of several chocolate and confectionery manufacturers, including Ferrero, Kraft, Nestlé and Mars. This triggered inquiries by Belgium's Competition Authority, including dawn raids at the Belgian head offices of seven chocolate and confectionery manufacturers in May 2008. The raids led to two separate investigations: one - still ongoing - considered the possible existence of a cartel between the manufacturers, while the other examined whether Ferrero and the supermarket chains were involved in illegal price fixing. The recent report represents the final stage of the price-fixing investigation.

According to the authority's press release, the report concludes that Ferrero and the supermarket chains have been in breach of Article 2 of the Competition Act and Article 101 of the EC Treaty since 2002. It accuses the parties of exchanging commercially sensitive information and coordinating price increases.

The parties will soon be able to present their defence, first in writing and then at a hearing. The council will then rule on whether competition law has been breached and whether to impose penalties.