The EU Commission is reportedly set to fine Mondelez International for allegedly restricting the sale of its products between the bloc’s member states.
The Financial Times, citing three unnamed sources “with direct knowledge of the decision”, the penalty would be issued “as early as next month”.
Go deeper with GlobalData
The Commission is said to have found evidence that proves the Cadbury producer has breached antitrust regulations. It is unclear how much Mondelez might be fined.
An investigation into the Oreo biscuits maker’s trade of chocolate, biscuits and coffee to EU member states was launched by Brussels in January 2021.
The Commission intended to look into Mondelez’s involvement in restricting ‘parallel trade’, where a company buys products in one country where they have a lower price and sells them in another where they are priced higher.
See Also:
Restricting parallel trade, according to the Commission at the time, “can lead to the isolation of a national market whereby the manufacturer or supplier can charge higher prices to the detriment of consumers”, as well as “lead to less product diversity”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataWhen the investigation was launched, Commission executive vice president Margrethe Vestager said the probe would assess whether Mondelez had “restricted free competition in the markets concerned by implementing various practices hindering trade flows, ultimately leading to higher prices for consumers”.
When asked for confirmation on the FT‘s report, a Mondelez spokesperson told Just Food: “We confirm that in 2021, the European Commission formally initiated an investigation against Mondelēz International into alleged infringements of European Union competition law.
“We are co-operating with the investigation and engaging with the European Commission in an effort to reach a resolution to this matter. We cannot comment further on an ongoing legal proceeding.”
The Commission declined to comment.
Last February, Mondelez said the antitrust inquiry could cost the company €300m ($318m).
In a statement issued at the time, the Chips Ahoy! maker said it was likely the final cost for the company “could be materially higher” than €300m, given “the inherent uncertainty of the discussions and possible outcomes”.
