Baby formula suppliers probed by China watchdog for inflating prices
Watchdog investigates milk suppliers for breach of anti-monopoly law; prices up 30pc in 5 years
Five foreign infant milk formula companies are under investigation by China’s top economic planning agency for possible antitrust violations, the Beijing Times reported on Tuesday quoting sources.
The article said Nestle, Abbott Laboratories, Mead Johnson Nutrition, Danone’s Dumex brand and Wyeth Nutrition are under investigation by China’s National Development and Reform Commission (NDRC) for possible price-fixing behaviour and anti-competitive practices.
A Danone spokeswoman said the world’s largest yoghurt group was “fully cooperating with authorities”.
Nestle said in an email it was cooperating with the investigation. Mead Johnson China-based spokeswoman Ronny Li said the firm had provided information to the NDRC. Wyeth Nutrition spokeswoman Winnie Wang confirmed the investigation was taking place and said the company was cooperating.
Abbott Laboratories and Dumex could not be reached for comment. Officials at the NDRC were not available to comment.
Danone shares were off 1.6 per cent in Paris while Nestle shares were down 0.3 per cent in Zurich.