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Oreo maker Mondelēz International will have to pay $366 million to the European Union (EU) for limiting cross-border sales, the EU said in a statement on Thursday.
The Commission said that Mondelēz “breached EU competition rules,” and engaged in twenty-two“anticompetitive agreements” aimed at restricting cross-border trade of its various chocolate, biscuit, and coffee products.
Mondelēz, one of the largest snack companies in the world, abused its “dominant position” in certain national markets, according to the EU. In one instance, it refused to supply a broker in Germany with chocolate products in order to prevent it from reselling in territories where prices were higher, it added.
The Commission’s investigation concluded that Mondelēz’s “illegal practices prevented retailers from being able to freely source products in Member States with lower prices,” and that it “artificially” divided the EU market.
“Such illegal practices allowed Mondelēz to continue charging more for its own products,” the EU said in its statement, noting that it ultimately passed the cost down to EU consumers.
In April, the EU warned Mondelēz that it would fine the company because of the “potential harm” it could cause consumers during a time of high inflation that pushed grocery prices up, the Financial Times first reported.
The Chicago-based Mondelēz, which owns a variety of brands including Oreo, Belvita and Triscuit, appeared to have been preparing to pay the fine. It said it had stowed away about $361 million for the penalty.
The EU said that it took into account the fact that Mondelēz cooperated with the Commission and acknowledged its liability for the infringement of EU competition rules, adding that it granted Mondelēz a 15% fine reduction.