CCI Rejects Complaint Against Cadbury Chocolate Maker Mondelez

Press Trust of India, edited by Sparshita Saxena  |  Updated: July 18, 2017 11:43 IST

CCI Rejects Complaint Against Cadbury Chocolate Maker Mondelez
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Competition Commission has rejected allegations of unfair business practices made against
Mondelez, an American International that owns popular chocolate brands, including Cadbury Dairy Milk and Gems. It was alleged that Mondelez India Foods and Mondelez International abused its dominant position by imposing unfair terms in their dealership agreement.

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Mondelez is a leading manufacturer of chocolate confectioneries and beverages, among others. After looking into the matter, the Competition Commission of India (CCI) decided to reject the complaint saying that prima-facie there is no violation of fair trade norms. "... the alleged conduct of opposition party (Mondelez India) does not appear to be covered under any of provisions of the (Competition) Act. Further, there appears to be no appreciable adverse effect on competition (AAEC) in chocolate market.

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"OP 1 neither imposes any anti-competitive conditions nor restricts the supply in the chocolate market," CCI said in an order dated August 11. This issue prima facie does not seem to raise any competition concern and "appears more to be a business dispute between the manufacturer and distributor," it said.
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CommentsThe complainant had also alleged that it was forced to supply to defaulting parties, manipulating the damage settlement policy and entering into the market of instant fruit flavoured drinks and biscuits by leveraging its dominant position in the market for non-premium chocolates. Mondelez India -- which came into existence following the acquisition of Cadbury India Ltd by Kraft Foods Inc in 2010 -- has several brands, including Cadbury Bournvita, Cadbury Dairy Milk, Gems, 5-Star, Perk and Bournville.

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