EU slaps Mondelez with $366 mn antitrust fine

The European Union has issued a $366 million fine to the US confectionary giant, Mondelez after the company was accused of restricting the cross-border trade of chocolate, biscuits and coffee products within the European Union.

The EU's Competition Commissioner, Margrethe Vestager, said, “This harmed consumers, who ended up paying more for chocolate, biscuits and coffee. This case is about the price of groceries. It's a key concern to European citizens and even more obvious in times of very high inflation, where many are in a cost-of-living crisis," according to AFP.

The European Commission accused Mondelez of preventing traders from selling products between EU member states between 2015 and 2019, despite the bloc maintaining a single market intended to guarantee the free movement of goods. It pointed to 22 examples where Mondelez was found to have engaged in anticompetitive agreements or concerted practices.

Mondelez was also accused of refusing to supply a trader in Germany to prevent the resale of chocolate in Austria, Belgium, Bulgaria, and Romania, "where prices were higher."

The penalty announced on Thursday is the ninth-largest antitrust fine ever issued by the EU. However, Mondelez said that "no further measures to finance the fine will be necessary." The company also said the fine related to "historical, isolated incidents, most of which ceased or were remedied well in advance of the commission's investigation," it said in a statement.

Mondelez, formerly known as Kraft, is one of the world's largest producers of chocolate, biscuits, and coffee and recorded revenue of $36 billion last year.