IFF fined EUR 15.9m for obstructing EU antitrust investigation
Fragrances - Photo by Diana on Pexels
(BRUSSELS) - The EU Commission fined US fragrance firm International Flavors & Fragrances EUR 15.9 million Monday for intentionally deleting WhatsApp messages exchanged with a competitor during an EU inspection.
In March 2023, the Commission carried out inspections at the premises of companies active in the consumer fragrance industry.
During its inspection, the Commission asked to review the mobile telephones of some of IFF's employees. While reviewing, the Commission detected that a senior employee had deleted WhatsApp messages exchanged with a competitor containing business-related information. The deletion took place after the employee had been informed about the Commission's inspection.
After the detection, IFF immediately acknowledged the facts and proactively cooperated with the Commission during and after the inspection. IFF cooperated by helping the Commission recover the deleted data.
In March 2024, the Commission opened proceedings against IFF for obstructing its investigation. IFF engaged in a cooperation procedure by acknowledging its liability and accepting the maximum amount of the fine.
According to the Regulation No 1/2003, the Commission can impose fines of up to 1% of the total turnover of companies, which intentionally or negligently obstruct an antitrust investigation. In setting the amount of a fine, the Commission takes into account both the gravity and the duration of the infringement.
The Commission considers that the infringement committed by IFF is of a very serious nature, particularly given that the senior employee intentionally deleted the WhatsApp messages after having been informed about the Commission's inspection. In addition, the Commission was not informed of the data deletion. Instead, Commission inspectors had to detect the deletion themselves after the mobile phone was submitted for review.
On this basis, the Commission concluded that an overall fine amounting to 0.3% of IFF's total turnover would be both proportionate and deterrent. At the same time, the Commission rewarded IFF for its proactive cooperation during and after the inspection. It therefore reduced the fine by 50% and imposed a fine of €15.9 million, which represents 0.15% of IFF's total turnover.
This is the first Commission decision imposing a fine for the deletion of messages exchanged via social media apps (WhatsApp) on a mobile telephone.
The Commission's investigation into the fragrance industry (AT.40826) is ongoing and is unrelated to this decision.
More information will be available on the competition website, in the Commission's public case register under the case number AT.40882. For more information on this case and more generally on the Commission's powers in the context of antitrust inspections please see our Q&A.