BRUSSELS – The European Fee introduced on January 28 that it has opened a proper antitrust investigation towards Chicago-based Mondelez Worldwide, Inc., over doable cross-border commerce restrictions in chocolate, cookies and occasional merchandise.
“Candies, cookies and occasional are merchandise that European residents eat every day,” stated Margrethe Vestager, govt vp answerable for competitors coverage on the EC. “We’re opening a proper investigation to see if Mondelez, a key producer of those merchandise, may have restricted free competitors within the markets in query by implementing numerous practices that hinder commerce flows, finally resulting in increased costs for the customers. Buying and selling on the inner market can decrease costs and improve the number of merchandise provided within the Member States. “
In its January 28 notification, the EC indicated that the EU marketplace for chocolate, cookies and occasional is price “tens of billions of euros yearly”. Considerations have been raised that Mondelez could have restricted the so-called “parallel commerce” of its sweets, cookies and occasional between EU member states by way of unilateral agreements and practices.
Particularly, the EC stated that merchants and retailers attempt to buy merchandise within the home market the place costs are decrease and to market them in markets the place costs are increased, a apply that may result in value decreases in nations the place costs are increased. excessive.
Within the Mondelez case, the EC stated it is going to examine sure probably anti-competitive practices by Mondelez, together with:
- Doable limitations of the gross sales territories inside the EU by way of agreements that decide by which member state a dealer can or can’t promote the merchandise, or that prohibit passive gross sales;
- Doable restriction of parallel commerce by way of agreements that increase costs or restrict volumes particularly for purchasers who market merchandise between member states;
- Doable agreements with purchasers to not take part in parallel commerce or to not buy merchandise from parallel commerce, amongst different issues, in trade for funds or different types of compensation;
- Doable restrictions on the languages used on packaging, both unilaterally or by way of agreements with retailers, thus creating friction in gross sales to different EU member states;
- Probably refusing to produce to sure merchants with a view to prohibit imports in sure markets.
The EC stated that if the violations are confirmed, Mondelez would violate EU antitrust guidelines.
There is no such thing as a statutory timeframe to finish an antitrust investigation. The size of an investigation relies on a lot of elements, together with the complexity of the case, the corporate’s cooperation with the Fee and the train of protection rights.
Mondelez has stated it is going to “work constructively with the European Fee whereas it conducts its overview.”
