Cadbury-owner Mondelez International faces a competition probe by the EU over claims it has hindered cross-border trade of its products.
The US-based group is accused of restricting the trade of its products between EU countries.
Traders and retailers within the EU can try to buy Mondelez’s chocolates, biscuits and coffee in a country where it is cheaper.
Probe: Cadbury-owner Mondelez faces a competition probe by the EU over claims it has hindered cross-border trade of its products
They can import the products to countries where the price is higher, helping to lower the cost for consumers in that area.
But regulators in Brussels are investigating whether Mondelez tried to force retailers into agreements to restrict this practice.
The Commission will also examine whether Mondelez hiked prices or limited volumes for firms that traded across the EU.
Executive Vice-President Margrethe Vestager, in charge of competition policy, 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 concerned by implementing various practices hindering trade flows, ultimately leading to higher prices for consumers.’
Brands: Mondelez owns a string of well-known brands including Oreo, Ritz, Philadelphia, Cadbury Dairy Milk
Mondelez said: We learnt 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.’
Chicago-based Mondelez, which was spun off from Kraft in 2012 before its merger with Heinz, owns a string of well-known brands including Oreo, Ritz, Philadelphia, Cadbury Dairy Milk and Belvita.
Back in November 2019, Commission investigators made a series of raids on Mondelez premises amid concerns that prices for food and drinks products significantly varied across EU member states.
The takeover of Cadbury by US based Kraft in 2010 prompted a revamp of the rules governing how foreign firms buy UK companies.
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