Mondelez, the maker of popular brands such as Oreo and Cadbury Dairy Milk chocolate, has been fined €337.5 million ($366 million) by the European Union for hindering the trade of chocolate, cookies, and coffee between European countries. The EU’s competition chief, Margrethe Vestager, stated that Mondelez engaged in illegal practices to limit cross-border sales across the EU in order to maintain higher prices for its products, ultimately harming consumers. The European Commission found that Mondelez deliberately restricted cross-border trade and abused its dominant position in certain national markets for chocolate bars.
One of the key findings was that Mondelez stopped supplying chocolate bars in the Netherlands to prevent them from being imported into Belgium, where the company was selling the same products at higher prices. This practice prevented retailers from freely sourcing products in EU member states with lower prices, leading to higher costs for consumers. A spokesperson for Mondelez stated that the penalty was related to isolated incidents that had ceased or been remedied prior to the Commission’s investigation. The company emphasized its commitment to compliance and has strengthened its annual mandatory compliance program to prevent future occurrences.
Mondelez had made an accrual for the fine in 2023, and no further measures will be necessary to finance it. The company acknowledged that the issue was not representative of their overall culture of compliance, and they will continue to prioritize compliance efforts in the future. The fine serves as a reminder of the consequences of anti-competitive behavior in the EU market and the importance of maintaining fair competition for the benefit of consumers. Mondelez will need to work to rebuild trust with regulators and consumers to ensure that similar incidents do not occur in the future.
The European Commission’s decision to fine Mondelez reflects the EU’s commitment to enforcing competition laws and preventing the abuse of dominant market positions. By penalizing companies that engage in anti-competitive practices, the EU aims to protect consumer interests and promote fair competition in the single market. Mondelez’s actions, which limited cross-border trade and raised prices for consumers, were found to be in violation of EU competition rules, leading to the significant financial penalty.
Moving forward, Mondelez will need to take steps to address the issues that led to the fine and ensure that compliance with EU competition laws is a top priority. By enhancing internal compliance programs and closely monitoring business practices, the company can prevent similar incidents from occurring in the future. The outcome of this case serves as a warning to other companies operating in the EU market to adhere to competition rules and avoid engaging in practices that harm consumers or hinder cross-border trade. Mondelez’s experience highlights the potential consequences of anti-competitive behavior and the importance of upholding fair competition principles in the European Union market.
