Procter & Gamble Under EU Antitrust Investigation Over Pricing Practices
Procter & Gamble is reportedly under investigation by European Union antitrust regulators over allegations of anti-competitive pricing behavior, according to sources cited by Bloomberg. The scrutiny focuses on whether the consumer goods giant coordinated with industry rivals to influence retail prices across the EU.
The probe is part of a broader effort by the European Commission to assess potential collusion among major fast-moving consumer goods (FMCG) companies in strategies that may have led to artificially inflated product prices. Authorities are examining whether key players consulted each other on retail pricing models, potentially breaching EU competition laws.
While the Commission has not officially named the companies involved, Procter & Gamble was among those recently raided by EU officials during unannounced inspections related to this investigation. Such raids, often an early phase of antitrust proceedings, suggest the Commission has identified potentially serious concerns about pricing alignment practices in the consumer goods sector.
Procter & Gamble, a global leader in household and personal care brands including Ariel, Pampers, Gillette, and Head & Shoulders, has not publicly commented on the report. However, the company may face significant legal and financial consequences if found in violation of EU competition rules, which prohibit coordinated pricing that restricts market competition and harms consumers.
This development comes at a time when several FMCG multinationals are under increased regulatory pressure in Europe as inflation and cost-push pricing strategies draw scrutiny. With consumers more price-sensitive than ever, regulators are examining whether companies may have engaged in behavior contributing to prolonged high shelf prices across grocery categories.
The European Commission has the authority to impose fines of up to 10% of a company’s global annual turnover if competition laws are found to be breached. For Procter & Gamble, whose fiscal 2023 net sales exceeded $82 billion, penalties could reach billions if wrongdoing is confirmed.
The investigation underscores a growing emphasis on transparency and competition in FMCG pricing, signaling potential shifts in retailer-manufacturer dynamics across the EU. Industry stakeholders will be closely monitoring the outcome as it could set a precedent for how pricing collaboration is evaluated under antitrust law across the consumer goods landscape.