Brussels imposes penalties on a U.S. perfume company
A worker at International Flavors & Fragrances Inc., a U.S.-based manufacturer of fragrances for various consumer products, was hit with a hefty €15.9 million fine by the European Commission. The tension arose when a significant employee, knowing about an approaching inspection by the Commission, deleted important WhatsApp conversations on company grounds. These conversations held sensitive business information and were shared with a rival company.
The European Commission, acting as the watchdog for EU competition rules, has the power to inspect companies under suspicion of rule-breaking. In this case, the employee was made aware of the upcoming inspection but chose to destroy the damning evidence. To their credit, International Flavors & Fragrances Inc. came clean as soon as they discovered the message deletion, which led to a reduced fine—a mere €15.9 million, translating to just 0.15% of their total sales revenue.
International Flavors & Fragrances Inc., as they describe themselves, specializes in creating and selling flavors and aromas used in food, beverages, personal care products, and household items. The company is notorious for its lengths to stay ahead of its competitors.
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The fine imposed by the European Commission served as a stark reminder for International Flavors & Fragrances Inc. to be more cautious with their communications, especially during times of potential investigations. Despite the deletion of incriminating WhatsApp chats, the company's quick confession likely saved them from a heftier penalty.
In the aftermath of the incident, the US fragrance manufacturer continued to maintain its competitive edge in Brussels, fine-tuning its strategies and strengthening its relationships within the industry.
