Mondelez fined the EU $366 million for restricting cross-border trade

Author: Foo Yun Chee

BRUSSELS (Reuters) – Oreo maker Mondelez International was fined 337.5 million euros ($365.7 million) by EU antitrust regulators on Thursday for obstructing cross-border trade in chocolate, cookies and coffee products between EU countries.

The sanctions imposed by the European Commission continue attacks on companies that impose territorial supply restrictions on distributors and retailers.

The commission found that Mondelez engaged in anti-competitive agreements and also abused its dominant position by violating EU antitrust rules. After the company admitted its mistake, the fine imposed on the company was reduced by 15%.

“We are determined to uphold fundamental freedoms in the European Union and ensure that European citizens have access to the greatest diversity at the lowest prices the market can offer,” Margrethe Vestager, the EU’s antitrust chief, said at a press conference.

Mondelez said the EU case involved historic, isolated incidents, most of which were stopped or corrected long before the Commission’s investigation.

“This historic issue does not reflect who we are and the strong compliance culture we strive for,” a Mondelez spokesman said.

The commission found that Mondelez restricted the territories or customers to which seven wholesale customers could resell their products between 2012 and 2019, and also prevented 10 exclusive distributors in some EU countries from responding to customer inquiries from other EU countries between 2006 and 2020.

Between 2015 and 2019, the company also refused to work with a broker in Germany to prevent the resale of chocolate tablet products in four countries where prices were higher, the EU watchdog said, adding that Mondelez also stopped deliveries of such products in the Netherlands to prevent before importation into Belgium.

($1 = 0.9228 euros)

(Reporting by Foo Yun Chee Editing by David Goodman)