The European Union is to fine Cadbury and Oreo owner Mondelez for blocking cross-border sales of its products, sources close to the issue told the Financial Times.
Three people with direct knowledge of the decision have said that regulators in Brussels will order the US confectionery company to put an end to the restriction of sales of its products between EU member states due to the potential damage this could cause to consumers amid a period of high inflation.
The fine could reach millions of euros and come in as early as May, however the official amount and the time of the announcement could change.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
Regulators first addressed their concern that Mondelez could be blocking trade between countries where product prices differed back in January 2021, with the European Commission having opened a formal antitrust investigation into the matter.
This looked into whether curbs on parallel trading had caused prices to rise or limited choice for consumers across Europe, and if there were restrictions to languages used on packaging which could compromise the choice of countries a trader can sell in.
The sources told the publication that the EU will now order the company to end any anti-competitive practices and issue a fine.
Regulators can give out fines that are up to 10% of a company’s global turnover if they have broken EU competition law.
It is understood that Mondelez set aside €340m against a potential EU fine this year.
Mondelez told the Financial Times: “We are co-operating 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.”
1 Comment. Leave new
It’s a very stupid company: try buying its Cote D’Or chocolate in Britain, virtually impossible (maybe some corner shops have it – one did but stopped). I have also NEVER seen it advertised in England, why not???