Mondelez Hit with €337.5M EU Fine Over Trade Restrictions

Mondelez International, the maker of brands such as Oreo and Cadbury, has been fined €337.5 million ($366 million) by the European Union for anti-competitive practices. The European Commission accused the company of impeding cross-border trade of chocolate, biscuits, and coffee products between EU countries, thereby abusing its dominant market position. The Commission highlighted that from 2012 to 2019, Mondelez restricted wholesalers from reselling products across borders, which prevented consumers from benefiting from lower prices available in other member states.

The fine was reduced by 15% after Mondelez acknowledged its wrongdoing, although the company claimed the case was not representative of its compliance culture. EU Competition Commissioner Margrethe Vestager emphasized that these actions violated single market rules, which aim to ensure that consumers have access to a variety of products at competitive prices across the EU. The Commission's decision reflects its ongoing efforts to crack down on companies that impose territorial supply constraints, thus hindering the free flow of goods within the internal market. Mondelez has set aside 300 million euros to cover the fine and may appeal the decision to the General Court in Luxembourg.