THE WHAT? India’s antitrust regulator is investigating Givaudan, DSM-Firmenich and IFF over alleged agreements not to poach each other’s employees.
THE DETAILS The Competition Commission of India (CCI) launched the probe in August following a leniency application, reviewing at least 30 internal emails suggesting a long-standing “gentlemen’s agreement” between the companies. The alleged arrangements, dating back to 2002 and potentially ongoing, involve commitments not to hire or approach employees from rival firms or clients without prior approval.
The investigation, India’s first focused on labour market practices, will examine whether such coordination—conducted via emails, calls and messages—restricted employee mobility and wages. Authorities have also requested detailed recruitment records from IFF covering 2012 to 2025.
The case follows similar investigations in Europe and the UK, where regulators are also examining potential collusion in the fragrance sector. If violations are confirmed, companies could face penalties of up to 10% of global turnover or three times profits in India.
THE WHY? The probe aims to protect worker mobility and ensure fair competition, addressing concerns that anti-poaching agreements could suppress wages and limit job opportunities.
Source: Reuters
