The European Commission fined International Flavors & Fragrances Inc. €15.9 million ($17 million) on Monday after finding that a senior employee deleted WhatsApp messages during an investigation into potential anti-competitive activity in the fragrance industry.

EU Fines IFF €15.9M for Deleting WhatsApp Messages : Details of the Fine

Enforcers discovered that messages had been deleted from the employee's phone during an unannounced inspection at IFF's facilities in March 2023. The inspection was part of an investigation into possible collusion in the supply of fragrances and fragrance ingredients.

Margrethe Vestager, the commission's executive vice president in charge of competition policy, emphasized the importance of compliance with antitrust investigations.

"Companies that undergo an inspection must ensure that employees do not delete or manipulate business records," Vestager said. "Today's decision to fine IFF shows that we will not tolerate any action that could impact the effectiveness of our investigations and that we firmly pursue and sanction any such obstructions."

Unprecedented Fine for Message Deletion

Enforcers stated that the employee deleted WhatsApp messages exchanged with a competitor about business-related topics after being informed of the investigation. This marks the first time the agency has issued a fine for deleting messages exchanged via a social media app on a mobile phone. The European Commission reduced IFF's fine by 50% due to the company's cooperation in recovering the deleted data.

IFF's Response and Ongoing Investigation

IFF acknowledged the fine in a statement on Monday, agreeing to settle the commission's charges of evidence destruction. The company stated that the employee's actions were against "explicit instructions" from both its legal department and the commission.

"This former employee's actions — which violated IFF policy and legal guidance — are not tolerated," the statement read. "We stand firm in our commitment to ethical conduct and adherence to the law."

The commission's antitrust investigation into the fragrance industry is ongoing. IFF assured full cooperation with the relevant authorities as the probe continues.

EU Fines IFF €15.9M for Deleting WhatsApp Messages : International Scope of the Investigation

Following the commission's inspections, Switzerland's competition authority named the companies involved and announced an international probe in collaboration with enforcers in Europe, the U.S., and the U.K. In addition to IFF, Swiss authorities identified Givaudan SA, Firmenich SA, and Symrise AG as part of the investigation. The probe focuses on concerns over coordinated pricing, restrictive supply agreements, and limited production of fragrance ingredients, which are used in a variety of goods, from household items to personal care products.

U.S. Lawsuits and Preservation of Evidence

Several U.S. lawsuits have been filed since the investigation was made public, with buyers alleging they overpaid due to the companies' antitrust violations. The fragrance companies have moved to dismiss these claims, arguing they are based solely on the existence of government probes.

The European Commission's Monday statement reiterated that companies under investigation must submit to inspections and preserve evidence. The commission's forensic IT experts use advanced tools to detect the deletion or manipulation of data.

U.S. antitrust enforcers have also warned companies about preserving digital evidence. In January, the Federal Trade Commission and U.S. Department of Justice issued guidance stressing the need to preserve messages sent using collaboration tools and "ephemeral" messaging platforms that can automatically delete conversations.