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The EU Commission has imposed a fine of 337.5 million euros on the US food giant.
Toblerone turbulence, Milka machinations, Daim deals: The US food giant Mondelez has distorted competition for years and artificially made its products more expensive.
The EU Commission has now imposed a penalty worth the equivalent of almost 335 million francs, as the competition authorities announced.
Legend:
In addition to Toblerone, Mondelez also produces Milka chocolate, Daim, Oreo, Mikado, Philadelphia and Tuc.
KEYSTONE/Anthony Anex
According to the EU Commission, Mondelez prevented chocolate from being bought in Germany – where prices are cheaper than in other EU countries such as Austria and Belgium – and then resold in other countries. Prices for Mondelez products were therefore noticeably more expensive in some EU countries than if there had been fair competition.
In 2021, the EU Commission opened an official investigation. The result is now in: Mondelez was involved in 22 anti-competitive agreements or concerted practices.
High price differences depending on the country
Specifically, trade in chocolate, biscuits and coffee products has been restricted, according to EU Commissioner for Competition Margrethe Vestager. “Price differences between member states are between 10 and 40 percent, sometimes even more.”
The company, with its European headquarters in Switzerland, said that the practices criticized by the EU Commission were isolated cases that occurred some time ago and mostly involved dealings with intermediaries. “This only accounts for a very small part of Mondelez International’s European business,” the statement said. The company attaches great importance to complying with regulations and has tightened its internal processes accordingly.
Legend:
EU Commissioner Margrethe Vestager commented on Mondelez in Brussels.
EPA/OLIVIER HOSLET
According to the Commission, there was an agreement that required Mondelez customers to charge higher prices for exports than for domestic sales. “These agreements and concerted practices took place between 2012 and 2019 and affected all EU markets,” it said.
“These illegal practices allowed Mondelez to continue charging higher prices for its own products, ultimately to the detriment of EU consumers,” said the EU Commission.
Mondelez cooperates with the Commission
The EU Commission is receiving support from the European consumer protection organisation Beuc. “It is unfair and simply wrong if consumers in some EU countries have to pay more for their chocolate, biscuits and coffee than in other countries because of the illegal behaviour of a company,” said Beuc Director General Monique Goyens.
Beuc therefore strongly welcomes the Commission’s approach. Companies like Mondelez benefit enormously from free trade in the EU internal market. It is therefore unacceptable that consumers are not able to enjoy these advantages because of artificial trade barriers.
Legend:
Mondelez International’s Toblerone chocolate factory in Bern.
KEYSTONE/Anthony Anex
The penalty should actually have been higher. Because Mondelez cooperated with the EU Commission and explicitly acknowledged its responsibility, the company was granted a 15 percent reduction in the fine, according to the competition authorities.
According to Mondelez, reserves have been set up for the expected penalty in 2023. “No further measures to finance the fine will be necessary,” the company continued.