Rome, 23 May 2024 – Toblerone and Oreo “too salty”. But it is not a question of “flavour”, but rather a question of price. A “salty” price indeed cost dearly to the multinational Mondelezthe giant of chocolate owner of these brands (but also of Côte d’Or, Milka, Lu and Ritz) which was fined by the EU: a fine of 337.5 million euros. The reason? Have inflated prices.
A carton of toblerone and Margrethe Vestager, European commissioner for competition
Oreo and Toblerone, but also Côte d’Or, Milka, Lu and Ritz are in fact some of the snacks and sweets most loved by Europeans – and not only that – but, unfortunately for the pockets of the fans of these delicacies, they were sold to inflated prices on the continent to the defacement of EU competition rules.
At the end of a three-year investigation, Brussels has fined Mondelez, the chocolate giant that owns the famous brands, 337.5 million euros for having hampered cross-border tradepreventing the retailers Europeans to buy products in EU countries where prices were lower.
A blow which, although reduced by 15% following the company’s admission of guilt, he enters in the top ten of the heaviest fines never imposed byEU antitrust for anti-competitive practices.
The investigation started in January 2021, the rEU Competition Manager, Margrethe Vestager, focused on the conduct of the group Chicago, Illinoisbetween 2006 and 2020. The evidence collected indicates that the food giant, born from Kraft Foods, in the offending period stipulated anti-competitive agreements or illegal coordinated practiceseffectively dividing the EU single market into smaller national segments to keep prices high. A practice contrary to one of the essential principles of the European project: la free movement of goods.
The group also abused its market power hindering imports of chocolate bars from some countries to others – for example from Holland to Belgium – where it sold its products at higher prices. “The objective was to prevent cross-border trade from leading to price decreases in countries with higher prices”, summarized Brussels in its conclusions.
The multinationalin addition to cooperating with the European authorities, she defended herself stating that it was “historical and isolated incidents, most of which were resolved well before the investigation.” However, the EU is “determined to support fundamental freedoms”, remarked Vestager, underlining that unfair practices could only be punished.
On the European territorygenerally prices for the same product can vary from 10 to 40% and cross-border trade has the ability to lower them, while increasing the availability of products for the benefit of citizens. A “particularly important principle – stated the EU antitrust leader – in times of high inflation”.
