Tetra Pak probed by China for ‘market abuse’

China is investigating global packaging giant Tetra Pak for “abusing” its dominant market role, an official said Friday, the latest in a series of probes aimed at foreign companies.

According to Swedish Paper The Local the head of the State Administration for Industry and Commerce said it covered 20 provinces and cities, but gave no further specific details of the inquiry.

“The administration has filed a case against Tetra Pak on suspicion of abusing its market  controlling position,” Zhang Mao was quoted as saying at a meeting, according to a transcript posted online.

Tetra Pak China, whose parent is headquartered in Switzerland, confirmed a request for information by the government and said it was cooperating. A spokesman for the firm declined to comment further.

Tetrapak_Packaging_Paper

China is investigating Tetra Pak for “abusing” its dominant market role.

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’s products include packaging for milk. The company has supplied Chinese dairy giant Mengniu and participated in a programme to boost sustainable dairy farming in China, company statements showed. Chinese consumers prefer foreign brand dairy products following a 2008 scandal in which tainted baby formula killed six children and sickened more than 300,000.

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

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