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Mondelēz To Be Fined By EU For Blocking Cross-Border Sales

By Sarah O'Sullivan
Mondelēz To Be Fined By EU For Blocking Cross-Border Sales

Mondelēz will be fined by the European Union (EU) as early as next month for restricting the sale of its products between EU member states, the Financial Times reported today.

The maker of Oreos and Cadbury chocolate will see a fine costing millions of euro.

‘Hindering Trade Flows’

Regulators in Brussels will order the fine, as the blocking of cross-border trading causes potential harm to consumers at a time of high inflation.

The regulators added that the timing of the announcement and the amount of the fine could change.

Mondelēz was first investigated by the EU antitrust authorities in January 2021, over concerns that the company may have breached competition rules.


At the time, European competition commissioner Margrethe Vestager said in a statement, “We are opening a formal investigation to see whether Mondelēz […] might have restricted free competition in the markets concerned by implementing various practices hindering trade flows, ultimately leading to higher prices for consumers.”

The EU has now found that Mondelēz was in breach of competition rules.

It noted that it would issue a fine and an order for Mondelēz to end any anti-competitive practices.


The investigation, led by the European Commission, focused on restrictions on the languages used on packaging.

This could potentially undermine the choice of countries in which a trader can sell.


It also looked at whether curbs on parallel trading had driven up prices or limited choices for customers across the Continent.

The decision by the commission comes as European consumers have been struggling for years with high inflation, which has impacted food and grocery prices significantly.

Mondelēz set aside €340 million this year against a potential EU fine that, it noted, could possibly be higher.

Regulators can impose fines of up to 10% of a company’s global turnover if they are found to have broken EU competition law.

Quarterly net revenue for the company rose to $9.03 billion in the third quarter last year, in the period ending 30 September. This beat analysts’ average estimate of $8.83 billion.


Speaking about the development, Mondelēz noted, “We are cooperating with the investigation and engaging with the European Commission in an effort to reach a proportionate resolution to this matter.

“We cannot comment further on an ongoing legal proceeding.”

The European Commission declined to comment.

Read More: Lindt 2023 Profits Lifted By Price Hikes As Chocolate Market Slows

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