Mondelez International Inc MDLZ has been fined 337.5 million euros ($365.7 million) by the European Union antitrust regulators for obstructing cross-border trade of chocolate, biscuits and coffee products within the EU.
This decision by the European Commission is part of a broader effort to address companies that impose territorial supply constraints on distributors and retailers.
The commission accused Mondelez of engaging in anti-competitive agreements and abusing its market dominance in violation of EU antitrust laws.
The fine was reduced by 15% after Mondelez admitted to the violations. EU Antitrust Chief Margrethe Vestager emphasized the importance of maintaining fundamental freedoms and ensuring that European consumers have access to a wide variety of products at competitive prices, reported Reuters.
Mondelez reportedly restricted the regions or customers to which seven wholesale clients could resell its products from 2012 to 2019.
Additionally, the company prevented 10 exclusive distributors in certain EU nations from responding to sales inquiries from customers in other EU countries between 2006 and 2020.
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Between 2015 and 2019, Mondelez allegedly refused to supply a broker in Germany to prevent the resale of chocolate products in four countries where prices were higher.
The company also halted the supply of these products in the Netherlands to stop their importation into Belgium. These actions further exemplified Mondelez’s efforts to control product distribution and maintain higher prices in specific regions.
Mondelez stated that the EU’s investigation pertained to historical and isolated incidents, most of which were addressed before the commission’s probe.
A spokesperson for the company stressed that these past issues do not reflect the current culture of compliance and strong ethical standards at Mondelez.
MDLZ Price Action: Mondelez shares are trading lower by 1.23% at $69.36 at publication on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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