A Culture Of Price Fixing In The Yogurt Industry?

(RTTNews) - French antitrust authorities have imposed a fine of 192.7 million euros (204 million dollars) on 11 dairy companies, on charges of forming a cartel to inflate prices of fresh dairy products over a period of six years.

According to the French authorities, the cartel was formed in secret meetings at restaurants around Paris and the malaise of price-fixing took place from 2006 to 2012.

Those charged included leading French yogurt and dairy manufacturers such as Yoplait, Lactalis, and Senoble.

The scandal was brought to light by U.S.-based General Mills (GIS) which acquired a controlling stake in Yoplait in 2011. General Mills, soon after acquiring the stake in Yoplait, came to know about the cartel and brought it to the notice of the authorities.

The companies were charged with colluding to increase prices of private-label products like yogurt, milk-based desserts and fresh cream sold to large retailers in Europe.

Fines for individual companies range from 300,000 to 56.1 million euros.

Yoplait however was not subject to the fine as General Mills blew the lid off the cartel. The other partner of Yoplait exempt from the fine is Sodiaal.

Another company, Senagral, too sought exemption from the 101.3 million euros fine imposed on it, as it said it cooperated with the authorities. The fine was subsequently reduced from 101.3 million euros to 46 million euros.

According to the authorities, company officials convened in hotels and called up specific mobile phones to determine prices of fresh dairy products. The companies involved represented 90 percent of the French market.