European Union Slams Mondelez With  $366 Antitrust Fine

Mondelez, the maker of the world-famous Oreo cookies and Dairy Milk chocolate, has been fined a whopping $366 million for manipulating the trade of chocolate, cookies, and coffee to European countries in order to keep the prices high. 

The EU’s competition chief, Margrethe Vestager, has approved this and said that the company has illegally limited the cross-border trade of its product within the EU in a bid to keep the prices high. She also added, “This case is about the price of groceries. It’s a key concern to European citizens and even more obviously in times of very high inflation, where many are in a cost-of-living crisis.

The European Commission started investigating in 2019 and found that Mondelez has been deliberately restricting cross-border trade within the EU, pushing the price of its goods up. For example, the company has ceased to export its chocolates to the Netherlands to prevent them from exporting them to Belgium, where Mondelez is selling the same product at higher prices. 

Also Read- US Government Plans To Waive Mass Student Loans

A company spokesperson came forward and clarified the company’s position on the matter. The spokesperson said, “This historical matter is not representative of who we are and the strong culture of compliance for which we strive. This is why we will continue to place emphasis on our overall compliance culture and have strengthened our annual mandatory compliance program to reflect learnings.

The EU Commission also mentioned that the company’s illegal practices have been ongoing since 2006. In 2006, Mondelez refused to export its goods to a wholesaler in Germany to prevent the resale of its chocolate in markets like Austria and Belgium, where Mondelez is already selling its products at a higher price. 

Leave a Reply