Regulators in Brussels have opened a formal antitrust investigation into the matter of whether the maker of Cadbury chocolate has really restricted competition by hindering the cross-border trade of its products in any manner in the jurisdiction of the EU. The European Commission said in a statement that if in case Mondelez is found guilty of anti-competitive behavior then the Chicago-based snack maker would be held in breach of EU antitrust rules.
Margrethe Vestager who is the executive vice-president of the EU for competition, said “Chocolates, biscuits, and coffee are products consumed by European citizens daily. We are opening a formal investigation to see whether Mondelez, a key producer of these products, might have restricted free competition in the markets leading to higher prices for consumers. However, the EU said that it had some serious concerns regarding the fact that Mondelez might have restricted the trade of its chocolates, biscuits, and coffee between EU member states through several agreements and unilateral practices.
Regulators are worried that Mondelez is blocking trade between those countries where the prices of products are way different. This practice is known as parallel trade. Many things are being included in the investigation including the possible restrictions on languages which are used on the packaging, deals that potentially undermine the choice of various countries where a trader can sell and whether the trend of parallel trading has led to an increase in prices or even limiting volumes for customers across the block.
Brussels said that the probe would be a matter of priority but it was to be noted that the opening of the formal investigation did not prejudge the results in any manner. “We learned about the European Commission’s announcement that it has opened a formal investigation into Mondelez International’s practices related to the cross-border supply of products within the European Economic Area. We will work constructively with the European Commission as it conducts its review,” the company said.
The Chicago-based group spun off from Kraft in the year 2012 before it got merged with Heinz. Two years back also there was a case where it reached a settlement with the US Commodity Futures Trading Commission over some charges that it and Kraft Heinz had their hands in manipulating wheat prices. Mondelez said last year that it was having the vision to acquire more and healthier snack brands amid rising global concern over obesity.
Mondelez International, Inc. is world famously American multinational confectionery, food, holding and beverage, and snack Food Company. It is having its headquarters in Chicago; Illinois. The name of Mondelez is very unique in its own way. It is a coined word that was adopted in 2012 and is said that then Kraft Foods employees suggested it at that time. It is derived from the Latin word “mundus” and “delez” which are the fanciful modifications of the words “world” and "delicious” respectively.
The Mondelez International Company deals in the manufacturing of chocolate, cookies, biscuits, gum, confectionery, and powdered beverages. If we look at the portfolio of Mondelez International then we can observe one thing that it includes several billion-dollar components. Such components include a wide range of products such as cookie and cracker brands Belvita, Chips Ahoy!, Oreo, Ritz, TUC, Triscuit, LU, Club Social, Sour Patch Kids, Barny, and Peek Freans; chocolate brands Milka, Côte d'Or, Toblerone, Cadbury, Green & Black's, Freia, Marabou, Fry's, and Lacta; gum and cough drop brands Trident, Dentyne, Chiclets, Halls, and Stride; as well as Jell-O, Tate's Bake Shop and powdered beverage brand Tang.
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