The EU Commission is reportedly preparing to impose fines on Mondelez International for allegedly restricting the sale of its products within the bloc’s member states. According to The Financial Times, sources with direct knowledge of the decision suggest that the penalty could be issued as early as next month.
Evidence uncovered by the Commission indicates that the Cadbury producer has violated antitrust regulations. The exact amount of the fine that Mondelez may face remains unclear. The investigation into the company’s trade practices involving chocolate, biscuits, and coffee within EU member states was launched by Brussels in January 2021.
The Commission’s focus is on Mondelez’s role in limiting ‘parallel trade,’ where products are bought in one country at a lower price and sold in another at a higher price. This practice, as noted by the Commission, can result in the isolation of national markets, leading to higher prices for consumers and reduced product diversity.
Commission executive vice president Margrethe Vestager stated when the investigation began that it would evaluate whether Mondelez had hindered free competition by implementing practices that impeded trade flows, ultimately driving prices up for consumers.
A spokesperson for Mondelez confirmed that the company is cooperating with the investigation and engaging with the European Commission to seek a resolution. However, the Commission declined to provide any comments on the matter.
Last February, Mondelez estimated that the antitrust inquiry could cost the company €300m ($318m). The company acknowledged that the final cost could exceed €300m due to the uncertainties surrounding the discussions and possible outcomes.
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