Tetra Pak
Tetra Pak packaging example

China Hits Tetra Pak with $99 Million Antitrust Fine

Nov. 17, 2016
Tetra Pak was found to have used its "dominant market position" to force suppliers to use its services and restrict their cooperation with rivals.

Chinese regulators have slapped Swedish firm Tetra Pak with a 668 million yuan (US$98.5 million) fine following an anti-trust probe into the global packaging giant.

The company was found to have used its "dominant market position" to force suppliers to use its services and restrict their cooperation with rivals, a statement from the State Administration for Industry and Commerce (SAIC) said Wednesday.

In a statement on its website, Tetra Pak said that it had "consistently attached importance to operating in accordance with regulations," adding that, although the decision was "regrettable," it would not file an appeal.

Tetra Pak's products include packaging for milk. The company has supplied Chinese dairy giant Mengniu and participated in a program to boost sustainable dairy farming in China.

Authorities announced the investigation into the company in July 2013 among a wave of probes targeting companies involved in the manufacture of dairy products, especially baby formula.

The National Development and Reform Commission (NDRC), China's top economic planner, has also targeted Nestle unit Wyeth Nutrition, France's Danone, Mead Johnson Nutrition, Abbott Laboratories and Dutch firm Royal FrieslandCampina over what it described as high prices for formula.

Tetra Pak has more than 23,000 employees and its packages are available in 170 countries.

It is part of the private Tetra Laval group, which is owned by the Swedish Rausing family.

Tetra Pak entered the China market in 1972, according to its website. It has a research center in Shanghai and packaging material plants in several Chinese cities.

Copyright Agence France-Presse, 2016

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