EU Fines Oreo-Maker Mondelez $366 Million For Rigging Sales Within Bloc

Mondelez, the company behind Oreo cookies and Toblerone chocolate, has been hit with a hefty fine by the European Union for restricting sales of its products within the 27-member bloc. The fine, totalling €337.5 million (US$366 million), is a punishment for practices that hindered competition and ultimately led to higher prices for consumers.

The EU’s competition commissioner, Margrethe Vestager, stated that Mondelez “abused its dominant position” by limiting the ability of wholesalers to resell its products across borders and by imposing higher export prices compared to domestic sales. These practices, which took place between 2012 and 2019, directly contradicted the EU’s single market principle of free movement of goods.

The European Commission’s investigation, which began in January 2021, uncovered evidence of anti-competitive agreements between Mondelez and its distributors. These agreements included restrictions on resale and price fixing measures. Additionally, the Commission found instances where Mondelez refused to supply products to certain distributors to prevent them from selling the goods in countries with lower prices.

Mondelez, however, maintains that the practices in question were “historical, isolated incidents” that have since been addressed. The company claims that many of these incidents involved one-off sales or small-scale distributors and argues that they did not significantly impact the market.

Despite Mondelez’s defense, the EU has imposed the fine to deter similar behavior in the future and to protect European consumers from unfair pricing practices. This case highlights the EU’s commitment to a competitive market environment that benefits both businesses and consumers.