Smurfit Westrock Faces €400 Million Italian Cartel Lawsuit with Other Packaging Firms

Smurfit Westrock and several other cardboard box manufacturers face a lawsuit in a Milan court filed by hundreds of businesses. The companies claim years of overcharges due to anti-competitive practices in the industry.​

The 363 businesses, suing via a special purpose vehicle, seek €400 million in damages, marking Italy's largest collective claim, as reported first by Global Competition Review. London-based DS Smith, acquired by International Paper last year, and 24 other packaging companies are also defendants.​

Food and furniture businesses among the hundreds of unnamed plaintiffs allege losses from overpaying for cardboard packaging due to two 13-year conspiracies. A Smurfit Westrock spokeswoman stated the company "cannot comment on ongoing cases."​

Smurfit Westrock had anticipated such actions, having received a €124 million fine from the Italian Market Competitiveness Protection Authority (AGCM) in 2019 for cartel involvement—the highest individual penalty in €287 million total fines. In its 2024 annual report, Smurfit Westrock noted legal proceedings by corrugated sheet and box purchasers post-fine, plus litigation threats. "The company believes it has significant defences to the damages claims and intends to vigorously defend the current and any future litigation," the report said.​

DS Smith gained immunity in the Italian probe by providing key information leading to fines. The AGCM's 2019 investigation uncovered two strands: a 2004-2017 agreement among firms like Smurfit Kappa Italia, DS Smith, Pro-Gest, Innova Group, and the trade association to set sales prices and production halts; and a 2005-2017 pact on market shares, prices, and commercial terms in corrugated packaging.​

Smurfit Westrock recouped about €15 million from the AGCM last year after challenging fine calculations but failed to overturn the core sanction. The lawsuit's special purpose vehicle receives funding from US-based Bench Walk Advisers, which finances actions for a share of awards. Class actions remain unavailable as they apply only to post-2021 infringements, per Global Competition Review.​