The European Union (EU) levied a substantial €337.5 million fine against Mondelez International Inc., the manufacturer of iconic brands like Toblerone, Oreo, and Ritz, for engaging in anti-competitive practices that restricted cross-border trade within the EU. The EU's competition chief, Margrethe Vestager, asserted that Mondelez's actions, which included agreements with distributors to segment markets and inflate prices, harmed consumers by limiting their access to lower-priced products from other EU member states.
The investigation, initiated in 2021, revealed that Mondelez employed various tactics to maintain artificially high prices, such as restricting where wholesalers could resell products and preventing distributors from fulfilling sales requests from other EU countries. These actions stifled competition and contravened EU laws designed to ensure a fair and open market.
A Mondelez spokesperson acknowledged the wrongdoing, stating that the illegal conduct does not reflect the company's values and emphasised their commitment to compliance. The case highlights the ongoing tension between brand owners and regulators regarding parallel trade, a practice that allows resellers to source products from cheaper markets within the EU and sell them elsewhere, potentially undercutting the brand owner's pricing strategies.
This significant fine follows a similar case in which Anheuser-Busch InBev was penalised for restricting cheaper imports of its Jupiler beer from the Netherlands to Belgium. The EU's actions underscore its determination to enforce competition rules and protect consumers from artificially inflated prices caused by anti-competitive behaviour.
