Eight EU countries are calling on Brussels to tackle international pricing practices

Eight European Union member states called on Brussels on Friday to crack down on multinational corporations that unfairly limit product sales across the EU, forcing European consumers to pay higher prices.

The appeal follows the European Commission’s imposition of a hefty antitrust fine of 337.5 million euros ($366 million) on Mondelez International Inc, the US confectionery giant known for brands such as Toblerone and Oreo, for restricting cross-border sales of its chocolate products.

As the EU prepares for next month’s elections, the cost of living has become a key issue. European households are struggling with high consumer prices due to the fallout from the Covid-19 pandemic and the economic impact of Russia’s war with Ukraine. While inflation has declined since its peak in late 2022, food prices remain persistently high.

Several EU countries see eliminating these disparities in the single market as a way to reduce the financial burden on consumers. A coalition of eight countries led by the Netherlands says there are significant price differences for identical products in the EU. They are calling on the European Commission to take action against large multinational companies that impose territorial restrictions, thereby preventing price harmonization across the bloc.

The seven other countries joining the Netherlands in this initiative are Belgium, Croatia, the Czech Republic, Denmark, Greece, Luxembourg and Slovakia. This issue was the main topic of discussion during Friday’s meeting of EU ministers in Brussels.

Margrethe Vestager, the EU’s competition commissioner, announced that Brussels would launch a “fact-finding mission” to thoroughly investigate the issue. “We need to find out what tools are actually necessary to prevent territorial restrictions that push prices up where they shouldn’t,” she said. The Commission, in its role as the EU’s antitrust regulator, will work with Member States to develop an effective solution.

Source: Taipei Times