The European Commission has imposed a fine of 337.5 million euros on US food company Mondelez for engaging in anti-competitive practices. The company, which owns popular brands such as Oreo, Cadbury, and Toblerone, is accused of obstructing sales of its products between EU member states. This was done in an effort to avoid cross-border trade, which could result in lower prices and harm consumers who end up paying more for products like chocolate, biscuits, and coffee. Mondelez’s actions were found to be in breach of EU competition rules, as it engaged in anticompetitive agreements and practices aimed at restricting cross-border trade of various products.
The European Commission stated that Mondelez abused its dominant position in certain national markets for the sale of chocolate tablets. By engaging in anticompetitive agreements, the company was able to charge higher prices for its products, ultimately harming consumers in the EU. This case is considered significant due to high European inflation and the generally high price of groceries, as well as the importance of protecting the free movement of goods in the single market. In total, the company was found to have engaged in 22 anticompetitive agreements or concerted practices that restricted competition and hindered cross-border trade.
One of the anticompetitive agreements included a provision that required Mondelez’s customers to apply higher prices for exports compared to domestic sales. Additionally, the company prevented ten exclusive distributors in the EU from responding to sale requests from customers in other countries without prior authorization. These actions further restricted competition and limited consumer choice, ultimately leading to increased prices for products like chocolate, biscuits, and coffee. By imposing a significant fine on Mondelez, the European Commission aims to send a strong message that anti-competitive practices will not be tolerated in the EU market.
European Commissioner for Competition, Margrethe Vestager, emphasized the importance of this case in protecting the free movement of goods in the single market. She highlighted the impact of high prices on consumers in the EU, particularly in the context of inflation and grocery costs. Mondelez’s anti-competitive practices were seen as a direct violation of EU competition rules and an abuse of its dominant position in certain national markets. By actively restricting cross-border trade and engaging in agreements that favored higher prices, the company ultimately put consumers at a disadvantage and limited choice in the market.
In conclusion, the European Commission’s decision to fine Mondelez for anticompetitive practices sends a clear message that such behavior will not be tolerated in the EU market. The company’s actions to restrict cross-border trade and charge higher prices for its products were found to be in violation of competition rules and harmful to consumers in the EU. By imposing a significant financial penalty, the Commission aims to deter similar practices in the future and uphold the principles of fair competition and free movement of goods within the single market. This case serves as a reminder of the importance of protecting consumer interests and ensuring a competitive marketplace for all businesses operating within the EU.
