The European Commission seems set to fine fragrance companies €15.9 million, after a senior employee was found to have intentionally deleted WhatsApp messages during an antitrust investigation, prompting claims of hypocrisy this week.
The American-based International Flavors & Fragrances Inc. and its French wing received the fine after a year-long investigation by EU antitrust officials, who claimed that a corporate cartel existed within the fragrance industry.
The story first gained media prominence in March 2023, when the company and three others had their premises raided. Officials found one company employee exchanging “business-related information” in deleted WhatsApp messages discovered during phone inspections.
European antitrust laws are notoriously strict, restricting abnormal cooperation between market operators. As part of a joint investigation with Swiss and American officials, the EU alleges that companies in the fragrance industry have conspired to rig prices over the past decade.
Despite its resolute stance against corporate abuse, the European Commission has itself been plagued by a top-level scandal for over a year, centred upon the opaque manner in which vaccine contracts were awarded to vaccine giant Pfizer during the COVID-19 pandemic.
Controversy surrounds the direct role played by Commission President Ursula von der Leyen in personally negotiating a deal with Pfizer as part of the heavily criticised vaccine rollout. Serious questions about transparency have been directed at von der Leyen for refusing to disclose direct messages between her and Pfizer CEO Albert Bourla.
The alleged ethical violation has provoked calls for von der Leyen’s resignation. Belgian prosecutors have commenced hearings into the Commission’s handling of the vaccine debacle, backed by Poland and Hungary.
While von der Leyen campaigns for a second term as senior EU executive, Belgian courts will postpone hearings until December 2024—in order to examine further evidence.
