Oreo Maker Mondelez Sets Aside 300 Million Euro to Resolve EU Antitrust Probe
Oreo maker Mondelez has set aside 300 million euros (approximately US $326 million) to resolve an EU antitrust probe into whether it blocked cross-border sales of its products in the European Union in breach of competition rules, the company said in a regulatory filing.
In January, 2021 the European Commission commenced an investigation focusing on the parallel trade of Mondelez's chocolate, biscuits, and coffee between EU countries where the company is a key producer in a market worth billions of euros. The Commission can fine companies up to 10% of their global turnover for antitrust violations.
The focal issue is whether the U.S. company-imposed restrictions on languages used on packaging and if it had refused to supply certain traders aimed at curbing imports into certain markets.
Mondelez, which is also the producer of Cadbury and Toblerone chocolates, said it has been cooperating with the investigation and is currently in talks with the EU competition enforcer in line to reach a negotiated, proportionate resolution.
On 31st January the company said in a regulatory filing, "as of December 31, 2022, the company recorded an accrual in accordance with U.S. GAAP of 300 million euros as an estimate of the possible cost to resolve this matter."
"There is a possibility that the final liability could be materially higher than the amount accrued," it further added.