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Swiss customers are paying unjustifiably high prices for Nivea products. Migros has now filed a complaint with the Swiss Competition Commission (COMCO) against the German manufacturer Beiersdorf.
Customers in Switzerland pay twice as much for Nivea shower gels, deodorants and facial care products as people in Germany do. That's because Migros must pay significantly more to purchase these products than they cost at shops in neighbouring Germany. Retailers in Germany pay up to 80% less for Nivea products than their Swiss counterparts. Migros is taking legal action to address these excessive procurement prices so that Swiss consumers can pay less for them in the future.
Migros’ legal action is based on the new provisions of the Swiss Federal Cartel Act, which came into force on 1 January 2022. These aim to prevent abuses of relative market power. The newly introduced offences are relevant in cross-border cases. Specifically, the new provision aims to enable Swiss retailers to purchase products abroad at the industry-standard local prices if there is an imbalance in negotiating power, thereby preventing companies in Switzerland having to pay unjustified premiums due to their country's strong purchasing power.
Since January 2022, Migros has requested talks with Beiersdorf several times and demanded better terms. However, the negotiations finally broke down in the autumn of 2024. Beiersdorf exploited its strong position and increased prices again. This is what prompted Migros to file a complaint with COMCO at the end of January 2025, as reported by CH Media newspapers on Saturday.
Migros can't simply remove Nivea products from its range because they are extremely popular with our customers. Indeed, Nivea products are even more popular at Migros than on the market as a whole. For example, 57% of consumers buy their Nivea shower gel exclusively from Migros. What's more, almost a third of the shower gels sold at Migros are Nivea-brand products. Were Migros to cease selling Nivea products, there is a danger that its customers will do all their shopping at Migros' competitors.
Yes. In one such case, in 2022, certain Mars products were discontinued. However, this concerned the pet range, not confectionery. For example, the ExcelCat brand, which is produced by Mars. In general, delisting products is challenging because international brand suppliers like Beiersdorf are more powerful, don't depend on Swiss retail sales and can stop delivering their products if agreement isn't reached.
The Competition Commission is assessing the complaint. It will then decide whether or not to initiate proceedings. One decisive factor will be whether COMCO confirms Migros' dependence on Beiersdorf and deems the latter to have high relative market power. It will also consider whether there are significant inexplicable price differences between Germany and Switzerland, although that should be obvious in this case.
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