Mondelez Faces €337.5 Million Fine for Manipulating European Markets

Mondelez, the company behind popular brands like Oreo and Cadbury Dairy Milk chocolate, has been fined €337.5 million ($366 million) for obstructing the trade of chocolate, cookies, and coffee within European Union countries.

"In today's ruling, it was determined that Mondelez unlawfully restricted cross-border sales within the EU. This was done in order to keep prices of its products high, which ultimately harmed consumers," stated Margrethe Vestager, the EU's competition chief, on Thursday.

The EU's executive arm, the European Commission, discovered that Mondelez International (MDLZ) intentionally limited cross-border trade and misused its strong market position in certain countries when selling chocolate bars.

According to the Commission, Mondelez stopped supplying chocolate bars in the Netherlands to avoid them being brought into Belgium, where the company was selling the same items at a higher cost.

The Commission found that Mondelez's actions hindered retailers from sourcing products freely in EU member states with lower prices.

A spokesperson from Mondelez International mentioned that the penalty was due to "isolated incidents, most of which had already been resolved before the Commission's investigation."

The company spokesperson emphasized that the historical issue does not reflect the strong compliance culture they aim to uphold. They will continue to prioritize compliance culture and have improved their mandatory compliance program based on past experiences.

The company set aside funds for the fine in 2023, and no additional measures will be needed to cover it.

This story has been updated with additional information.

Editor's P/S:

The hefty fine imposed on Mondelez exposes the insidious practices employed by some corporations to maintain high prices and stifle competition. The company's deliberate obstruction of cross-border trade within the EU reveals a disregard for consumer welfare and a desire to maximize profits at the expense of fair competition. This behavior ultimately harms consumers by limiting their choices and driving up prices.

The EU's investigation highlights the importance of antitrust laws in preventing anti-competitive practices that can stifle innovation and economic growth. The fine serves as a strong reminder to companies that they must adhere to competition laws and prioritize fair market practices. By holding Mondelez accountable for its actions, the EU is sending a clear message that such behavior will not be tolerated. It is crucial that companies embrace ethical and competitive practices to foster a thriving and consumer-centric marketplace.