P&G under EU antitrust scrutiny alongside Coca-Cola in product sales probe

Procter & Gamble Co. (P&G), the maker of products like Pampers diapers and Oral-B toothbrushes, has come under informal investigation by the European Union's antitrust regulators.

According to sources familiar with the matter, quoted by Bloomberg, the investigation centers around suspicions that the U.S. company may have illegally segmented its product sales within the 27-nation EU, preventing products from moving freely across borders at lower prices.

EU regulators have already issued a list of questions to P&G and are seeking additional evidence from rivals and customers, sources say. The European Commission revealed the probe in March, alongside raids targeting companies in the soft drinks industry, with reports later indicating that Coca-Cola brands were among those investigated. However, EU officials did not directly name P&G, referring to the company only as "active in the personal care sector" in their announcements.

While the probe could potentially lead to penalties, with fines reaching up to 10% of a company’s global annual revenue for competition law breaches, it does not imply any guilt. No formal charges have been filed against P&G, and EU regulators often abandon investigations during the fact-finding phase if initial concerns are not substantiated.

P&G has not yet responded to requests for comment, and the European Commission declined to provide further details.

This investigation adds to the growing pressure on major global consumer brands under scrutiny in Europe. In May 2024, Mondelez International Inc. was fined €337.5 million ($372 million) after being found guilty of illegally blocking cross-border sales of its products, such as chocolate, cookies, and coffee. This reflects the EU's increasing focus on examining corporate practices and their potential impact on European consumers.

By Tamilla Hasanova