Milka's mother faces a hefty fine following the price hike of chocolate.
Mondelez, a major player in the chocolate, cookie, and coffee industries with well-known brands like Milka and Oreo, is facing a hefty penalty from the European Union (EU) for allegedly keeping prices high across borders. The EU Commission fined Mondelez a staggering 337.5 million euros for engaging in unlawful practices that restricted competition in the trade of these products. These practices led to higher prices for consumers, with brands like Milka, Oreo, and Tuc being affected.
The Commission revealed that Mondelez had been involved in 22 anti-competitive agreements and concerted practices. In summary, the company had stopped its trading partners from purchasing Mondelez products cheaply in one EU country and then reselling them in another. This was done to maintain high prices across Europe. EU Competition Commissioner Margrethe Vestager explained that this practice is problematic, especially when considering the current period of high inflation. Parallel trade, which involves the import and export of goods between different regions, can help lower prices on the European market. By exploiting its market power, Mondelez essentially forced traders into unfair agreements that violated EU market rules.
Additionally, Mondelez was found to have refused to supply a broker in Germany. This refusal was intended to prevent the resale of chocolate bar products in Austria, Belgium, Bulgaria, and Romania, where the prices were higher.
Mondelez is a global food company with iconic brands like Milka, Oreo, and Philadelphia as well as a turnover of over $36 billion (33 billion euros). The fine is the largest ever imposed by the EU Commission on a food company and is one of the top ten highest fines in total.
Mondelez's actions have attracted attention for their severity, with the fine being the highest ever issued by the EU Commission to a food company and ranking among the top ten most significant fines overall.
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- The EU Commission's harsh penalty against Mondelez for manipulating trade relations in the confectionery sector, resulting in higher prices for consumers, has raised concerns among other businesses operating within the EU's trade rules.
- Following the EU's significant fine on Mondelez for engaging in unlawful trade practices, the European Union is now investigating several other confectionery companies for potential price fixing and market manipulation.
Source: www.ntv.de
