The report states that CCI initiated the probe in August after a company approached it under its leniency programme
Over accusations of striking anti-poaching deals that can impact workers and alleged coordination tied to labour practices, the Competition Commission of India (CCI) is probing global fragrance makers Givaudan, Firmenich and International Flavors and Fragrances, Reuters reported.
The report noted that the fragrance case marks India’s first to address labour practices, lawyers said, although authorities have previously focused on price-fixing probes. Regulators argue that agreements between rivals not to hire away employees limit job opportunities and suppress wages.
CCI initiated the probe in August after a company approached it under its leniency programme, which offers confidentiality and reduced penalties in exchange for evidence of wrongdoing. Based on a review of at least 30 emails, the regulator found merit in allegations that the firms had a “gentlemen’s agreement” not to hire or poach employees from rivals or clients, both in India and globally.
The regulator said the alleged coordination occurred through emails, phone calls and chats, adding that its investigators will examine the matter and submit a report, a process that could take over a year. In a statement, US-based International Flavors and Fragrances said it is fully cooperating with the CCI’s information requests and will engage constructively in the legal process.
In 2023, antitrust regulators in Switzerland and the UK said they were probing the three companies, while the European Commission noted it was examining “possible collusion” in the supply of fragrances and their ingredients without naming specific firms.
In September, the UK regulator said its investigation was ongoing, while the EU last confirmed in 2024 that its case was progressing. The companies have said they are cooperating with investigators. Unlike several global counterparts, the CCI does not disclose details of such probes until they are concluded. (With Reuters Inputs)
