BRUSSELS — The European Commission has fined Chicago-based Mondelez International, Inc. €337.5 million ($365.5 million) for hindering the cross-border trade of chocolate, biscuits and coffee products between its Member States.
As part of its investigation, the EC said Mondelez took part in 22 anticompetitive agreements between 2006 and 2020. Specifically, the EC said Mondelez limited the territories or customers to which seven wholesale customers could resell its products. One agreement also included a provision ordering Mondelez’s customer to apply higher prices for exports compared to domestic sales, the EC said.
Additionally, the EC found that between 2006 and 2020 Mondelez prevented 10 exclusive distributors active in Member States from replying to sale requests from customers located in other Member States without prior permission from Mondelez.
The EC also determined that Mondelez abused its dominant position between 2015 and 2019. First, by refusing to supply a broker in Germany to prevent the resale of chocolate tablet products in Austria, Belgium, Bulgaria and Romania where prices were higher, and second, by ending the supply of chocolate tablet products in The Netherlands to prevent them from being imported into Belgium, where Mondelez was selling the products at higher prices.
“Prices for food differ between Member States,” said Margrethe Vestager, executive vice president in charge of competition policy at the EC. “Trade over borders of Member States in the internal market can lower prices and increase the availability of products for consumers. This is especially important in times of high inflation. In today’s decision, we find that Mondelez illegally limited cross-border sales across the EU. Mondelez did so to maintain higher prices for its products to the detriment of consumers.”
The EC said Mondelez was given a 15% reduction in the fine because the company cooperated with the EC and acknowledged its liability for the infringement of EU competition rules.