Kimberly Clark International Products and Essity Fned for Collusion in Diapers

Kimberly Clark, International Products and Essity fined for collusion in diapers and other products
La Cofece detected that they colluded in the market for baby diapers, products for feminine sanitary protection and incontinence.

The Federal Economic Competition Commission (Cofece) fined Essity Mexico, Kimberly Clark de Mexico (KCM) and Productos Internacionales Mabe for a total amount of 313 million 473 thousand pesos, after colluding in the market for baby diapers, protection products feminine sanitary and incontinence.

According to the agency, in the investigation that began in November 2017 it was proven that companies, through individuals, periodically held meetings to exchange information and agree on price increases for products or the elimination of promotions.

In addition to verifying compliance with the agreement, monitoring the established prices and claiming deviations from what was agreed, for which they also maintained communications through emails.

La Cofece announced that various acts were also detected to maintain the secrecy of communications and it was observed that people knew the illegality of their acts.

The collusion to agree on prices for baby diapers and incontinence products was carried out from February 2008 to June 2014, where KCM, Productos Internacionales and Essity México participated; while in the case of feminine sanitary protection products, the practice occurred from September 2011 to June 2014 and KCM and Essity Mexico participated.

The Commission estimated that the sanctioned conducts caused an approximate damage of 1,567 million 36 thousand 589 pesos in the market involved, for which the maximum possible fines were imposed in accordance with the applicable competition law.

In this sense, it specified that once the resolution has been notified to the parties, the economic agents and the sanctioned persons have the right to go to the Judicial Power of the Federation to have the legality of the Cofece’s actions reviewed.

Reviewer overview

Kimberly Clark International Products and Essity Fned for Collusion in Diapers - /10

Summary

Kimberly Clark, International Products and Essity fined for collusion in diapers and other products La Cofece detected that they colluded in the market for baby diapers, products for feminine sanitary protection and incontinence.

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