Swiss competition authorities have opened an investigation into German consumer goods giant Beiersdorf, the maker of Nivea, following allegations that it has abused its market position in pricing negotiations with Switzerland’s largest retailer, Migros. The Swiss Competition Commission (COMCO) announced on Tuesday that it is examining whether Beiersdorf possesses “relative market power” over Migros, particularly in light of claims that Migros is being denied access to Nivea products on the same terms offered to retailers in other countries.
At the heart of the dispute is the accusation that Beiersdorf has leveraged its dominant position in the Swiss personal care market to charge Migros significantly higher prices for Nivea products compared to those paid by retailers abroad, notably in Germany, where prices are reportedly up to 80% lower. Migros contends that it has no viable alternatives to Nivea’s popular brands, creating a dependency that Beiersdorf allegedly exploited to maintain inflated prices. This case is a direct test of Switzerland’s 2022 amendments to its Cartel Act, which introduced the concept of “relative market power” to address situations where a supplier can dictate terms to a dependent trading partner, even without overall market dominance.
Beiersdorf has responded by stating it cannot comprehend the allegations and is committed to cooperating fully with the investigation, emphasizing its priority on compliance with antitrust laws. The probe, expected to take around 18 months, could have far-reaching implications for multinational companies employing cross-border pricing strategies, especially as Switzerland seeks to shed its reputation as a “high-price island” through recent legislative reforms.
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(Source: Blue News | Ainvest)
