Are Swiss consumers paying too much for Nivea products? That is the question being raised by the Swiss Competition Commission (Comco).
The Swiss authority responsible for monitoring anti-competitive practices has launched an investigation against German cosmetics giant Beiersdorf in a dispute with the Migros supermarket chain over the prices at which Nivea products are sold.
The investigation seeks to determine whether “Beiersdorf holds a position of relative market power over Migros” and “is abusing that position” by demanding “higher prices” than those charged to comparable retailers abroad, according to a statement from Comco.
Comco took up the case following a complaint filed by Switzerland’s largest retailer, the German group told AFP.
Migros alleges that Beiersdorf charges higher prices for Nivea products in Switzerland than it does to comparable retailers in other countries.
“Beiersdorf does not understand these accusations and will fully support Comco in order to help clarify the situation,” the company said in a statement.
“The subject of the complaint is an alleged discrimination against Migros in connection with a presumed relative market power,” added the group, which produces skin creams, deodorants, shower gels, and shampoos.
However, “compliance with legal regulations” is “an absolute priority for Beiersdorf,” emphasized the Swiss branch of the German group.
In 2022, Switzerland tightened its competition rules by introducing the concept of relative market power into law.
This concept applies in cases where a company is dependent on another and lacks reasonable alternatives for procurement. While not illegal in itself, the law prohibits exploiting this relative market power to impose abusive conditions, Comco had explained at the time.
