The European Commission announced on Thursday it fined Mondelez International Inc (NASDAQ:MDLZ). €337.5 million for obstructing the cross-border trade of chocolate, biscuits, and coffee products between the European Union’s member states.
Anticompetitive practices revealed
The Commission’s investigation revealed that Mondelez breached EU competition rules through anticompetitive agreements and concerted practices aimed at restricting cross-border trade of various chocolate, biscuit, and coffee products.
Additionally, Mondelez was found to have abused its dominant position in certain national markets for the sale of chocolate tablets.
Impact on consumer prices
According to the Commission’s statement, Mondelez’s actions were intended to “avoid that cross-border trade would lead to price decreases in countries with higher prices,” allowing the company to charge more for its products.
European Commissioner for Competition Margrethe Vestager commented,
“In today’s decision, we find that Mondelez illegally limited cross-border sales across the EU. Mondelez did so to maintain higher prices for its products to the detriment of consumers.”
Broader implications for market competition
This decision underscores the European Commission’s commitment to ensuring fair competition and preventing companies from engaging in practices that harm consumers by keeping prices artificially high.
The fine serves as a reminder to other companies operating within the EU of the importance of adhering to competition rules to promote a healthy and competitive market environment.
This article first appeared on Invezz.com
