Washing machines, fridges, dishwashers: how household appliance giants manipulated prices

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The investigation, which is coming to an end, reveals a system of collusion known as “vertical”. In concrete terms, the manufacturers would have exchanged confidential information or agreed on sales prices with the traders. These practices , which distort competition, are to the detriment of the consumer.

Whirlpool, already heavily fined in 2018, expects to pay a high price. The group has set aside €62.5 million in anticipation of the fine. Other major players in the sector have also put their hands in their pockets: Miele (€17.3 million), the Chinese group Haier (€39 million for the Candy, Hoover and Rosières brands), BSH (€20 million for Bosch products), and Smeg (€4 million).

Electrolux, listed on the stock exchange, had to lay its cards on the table. The Swedish giant announced that it had reached an agreement with the ADLC and set aside €56 million. The same story is heard on the distribution side with Fnac Darty, which has chosen the transaction procedure and set aside 85 million euros.

Price agreement

These sanctions come in a delicate context for the household appliance industry. “The market has been difficult for a year and margins are already quite low”, a former executive in the sector told L’Informé. The fines, calculated as a percentage of the turnover of the product lines concerned, are likely to leave their mark.

Some players, such as Seb (Moulinex, Rowenta, Krups), have chosen to contest the grievances levelled against them. Others could appeal the final decision. But be careful: in the event of an appeal, the fine will still have to be paid while awaiting the final outcome of the case, which could take years.

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The scale of this case could well propel it into the top 10 of the largest penalties imposed by the ADLC since 2009. The total amount of fines should exceed 280 million euros, only for companies that have already set aside sums. And the list is not exhaustive.

Déjà vu

This new case echoes that of 2018. Six household appliance giants were then fined 189 million euros for having agreed on price increases during secret meetings. The difference? This time, distributors are also in the firing line.

The investigation was thorough. Searches were carried out at almost all of the companies mentioned, as well as at the French premises of Samsung, LG, the Pulsat brand and Gifam (a group of home appliance brands). The latest hearings took place in the first half of 2024, suggesting an imminent decision.

The impact of these sanctions could be considerable for the sector. Beyond the financial aspect, it is the brand image of these companies that risks being tarnished. Consumers, already scalded by the first case, could lose confidence in these big names in household appliances.

This case also raises questions about business practices in other sectors. The ADLC is sending a clear message: Agreements, whether horizontal or vertical, will not be tolerated.

It remains to be seen how the fined companies will respond. Some may be tempted to pass on the cost of the fines through prices, risking further alienating consumers. Others may fundamentally overhaul their business practices to avoid future sanctions. We can always dream.

• The Competition Authority is preparing to impose record fines on household appliance giants for price fixing.
• The penalties could exceed 280 million euros, affecting both manufacturers and distributors.
• This case could have significant repercussions on the sector and encourage other industries to review their business practices.

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