Recently, according to report, The Swiss Competition Commission (Comco) has initiated an investigation into Beiersdorf, the German cosmetics giant, regarding pricing practices for Nivea products in Switzerland. This scrutiny follows a complaint from Migros, Switzerland’s largest retailer, alleging that Beiersdorf is imposing higher prices on Nivea products compared to what it charges other retailers in other countries.
Comco’s investigation aims to determine whether Beiersdorf, which produces a range of skincare and personal care items including skin creams, deodorants, shower gels, and shampoos, holds a dominant market position relative to Migros and if it is leveraging this position unfairly. According to statements from Comco, the inquiry will focus on whether Beiersdorf’s pricing constitutes an abuse of its market power under Swiss competition law.
In response to these allegations, Beiersdorf has expressed its intention to cooperate fully with Comco to clarify the situation. The company emphasized its commitment to complying with legal regulations and stated that it does not agree with the accusations brought forth by Migros. Beiersdorf’s Swiss branch highlighted that adherence to competition laws remains a top priority.
Switzerland recently strengthened its competition regulations to include provisions addressing relative market power, which refers to situations where a company lacks viable alternatives for procurement and may be subject to exploitation by dominant suppliers. While such market positions are not illegal per se, Swiss law prohibits their abuse to enforce unfair conditions, as outlined by Comco.
