In the vitamin business, manufacturers used secret agreements to maintain high prices for years. The conspiracy involved 21 vitamin manufacturers from Europe and Asia forming 16 different cartels over a decade and a half to exploit their customers. Roche, along with BASF and Rhône-Poulenc, was the main co-conspirator and ringleader.
The conspirators operated with great efficiency, making agreements in secret and avoiding leaving traces of data. Roche’s punishment was severe, including fines imposed by the US and EU authorities, as well as compensating cheated customers with a total of 5 billion francs. Three Roche managers were also sentenced to prison in the USA. Despite claiming ignorance, top management was found complicit in the conspiracy, as they had knowledge and involvement in the price-fixing scheme.
The vitamin cartel was unprecedented due to its international scope and organization. Roche and other companies worked together in a joint venture-like setup, enforcing price agreements and sanctions for violations. The conspiracy was successful in maintaining high prices despite growing competition, with Roche playing a central role in multiple cartels.
The US tightened antitrust policies in the early 1990s, leading to the discovery and dismantlement of the vitamin cartel. Rhône-Poulenc’s confession and cooperation with US authorities brought the case down, ultimately leading to the collapse of the cartel. Roche, facing hefty fines and declining profits, shifted its focus away from bulk goods towards specialized cancer drugs.
The era of vitamin price-fixing came to an end as legal crackdowns and changing market dynamics forced Roche
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