The European Union has fined Oreo maker Mondelez 337.5 million euros for antitrust violations. Mondelez, known for brands like Toblerone and Oreo, restricted cross-border sales, leading to higher prices for consumers. The EU’s competition commissioner, Margrethe Vestager, stated that this harmed consumers who ended up paying more for chocolate, biscuits, and coffee.
Mondelez, with revenue of $36 billion last year, is a major producer of chocolate, biscuits, and coffee. The EU’s investigation began in January 2021, with raids on Mondelez offices in November 2019. The company was accused of limiting traders’ ability to resell products and applying higher prices for exports compared to domestic sales between 2012 and 2019.
Mondelez defended itself, calling the incidents “historical, isolated incidents” that were mostly resolved before the investigation. The company set aside 300 million euros to cover the fine, stating that no additional measures would be needed to finance it.
The EU emphasized the importance of traders being able to buy goods in countries where they are cheaper, as it increases competition, lowers prices, and provides consumers with more choices. The EU’s penalty is the ninth-largest antitrust fine, highlighting the importance of fair competition and consumer protection in the single market.