Tailwind for HV’s demand for a ban on territorial delivery restrictions: EU Commission imposes 337 million euros fine on food company Mondelez
The crown jewel for the EU’s competitiveness is the internal market, but it is not yet finished. Today’s decision by the European Competition Commission is therefore an important signal to all international food producers that hindrance to cross-border trade in the EU internal market will no longer be tolerated
Rainer Will
Vienna (OTS) – Die End customer prices for the cheapest food and discount own brands According to the current AK price monitor, prices in local supermarkets and discount stores are compared to the previous year fell by 3.3% – and this despite persistently high costs for energy, personnel, logistics and borrowed capital. However, prices have increased more expensive branded products from global food companies.
Territorial delivery restrictions cost European consumers 14 billion euros
One main reason for this is the oft-quoted one “Austria surcharge”the local grocer in the cross-border procurement have to pay. Specifically, it is discriminatory practices in the industry, with which consumers in Austria are charged higher prices than in Germany, for example. The Federal Competition Authority has already criticized this in its final report on the industry investigation of the entire food value chain from November 2023.
The trade association, in turn, has been highlighting this unfair practice again and again since 2022. According to the BWB, this form of discrimination accounts for a large part Price difference between Austria and Germany and costs consumers across Europe around 14 billion euros annually.
Obstruction of cross-border trade: Mondelez has to pay a fine of millions
The trade association has been calling for this for years Prohibition of territorial delivery restrictions and is now receiving tailwind from the EU Competition Commission. As announced today, the global food producer must Mondelez International for hindering cross-border trade in the European internal market Fine of 337 million euros pay. The manufacturer agreed on this in a settlement with the EU Commission.
Mondelez has cross-border sales in the EU according to EU Vice President and Competition Commissioner Margrethe Vestager unlawfully restricted in order to keep the prices of its products high to the detriment of consumers in countries such as Austria or Belgium.
The European internal market is the crown jewel of the EU’s competitiveness
“The crown jewel for the EU’s competitiveness is the internal market, but it is not yet finished. Today’s decision by the European Competition Commission is therefore an important signal to all international food producers that hindrance to cross-border trade in the EU internal market will no longer be tolerated
“, says Rainer Will, Managing director of the free and non-partisan trade association.
“The next step can only be a legal ban on territorial delivery restrictions throughout the Union so that retailers in smaller countries such as Austria or Belgium no longer have to purchase goods at excessively high costs. That would cost European consumers 14 billion per year “relieve the burden on the euro”so Willthe trade spokesman.
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