EU fines Mondelez for obstructing trade

The European Commission imposed a fine of €337.5 million on the American candy manufacturer Mondelez on Thursday for obstructing cross-border trade in chocolate, biscuits, and coffee products among EU countries.

Mondelez International entered into agreements that violated fair competition regulations and abused its dominant position in the confectionery market, the Commission found. From 2012 to 2017, a group of seven retailers was allowed to sell its products only in certain territories, and their number of customers was also limited, according to the Commission’s statement.

A group of 10 exclusive distributors in certain EU countries had to seek permission from 2006 to 2020 to respond to customer inquiries about sales in other EU countries.

From 2015 to 2019, Mondelez also refused to supply a retailer in Germany to prevent the resale of chocolates in Austria, Belgium, Bulgaria, and Romania, where their prices were higher, the EU regulator reported.

They also halted deliveries to the Netherlands to prevent their resale in Belgium, where they were sold at higher prices.

– “We remain committed to supporting the fundamental freedoms in the European Union and ensuring that European citizens have access to the widest range of products at the lowest prices the market can offer,” said European Commissioner for Competition Margrethe Vestager at a press conference.

The fine was reduced by 15 percent, to €337.5 million, after the company acknowledged the violation.

On Thursday, they stated that the violations represent isolated incidents from the past, emphasizing that they corrected their business practices long before the Commission’s investigation.

– “Issues from the past do not reflect who we are today or the strong culture of compliance we strive for,” said a Mondelez spokesperson.