BLOCKING sales of its produce between European Union members states has landed Mondelez, which has a factory in Chirk, with a fine of £288 million.

The European Commission has imposed a fine of 337.5 million euros (£288 million) on food company Mondelez, the owner of Cadbury and other snack brands, for obstructing sales of its products between EU member states, the bloc’s executive arm has said.

Mondelez owns the Toblerone chocolate brand as well as Oreo and Chips Ahoy cookies, Triscuit crackers and Perfect Snacks nutrition bars and has a factory in Station Road in Chirk.

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The commission said Mondelez tried to avoid that cross-border trade because that could lead to lower prices.

It said this harmed consumers, who end up paying more for chocolate, biscuits and coffee.

“Such illegal practices allowed Mondelez to continue charging more for its own products, to the ultimate detriment of consumers in the EU,” it said.

The Chicago-based sweet and snack company breached EU competition rules “by engaging in anti-competitive agreements or concerted practices aimed at restricting cross-border trade of various chocolate, biscuit and coffee products”, the commission said.

“And by abusing its dominant position in certain national markets for the sale of chocolate tablets.”

European Commissioner for Competition Margrethe Vestager said the case was about the price of food, which was a particularly important concern for Europeans at a time of high inflation.

“It is also about the heart of the European project: the free movement of goods in the single market,” Ms Vestager said.

According to the EU’s executive branch, the company engaged in 22 anti-competitive agreements or concerted practices.

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According to the EU, one agreement included a provision ordering Mondelez’ customers to apply higher prices for exports compared to domestic sales.

The commission added that Mondelez prevented 10 exclusive distributors based in the 27-nation bloc from answering sales requests from customers in other EU countries without prior authorisation from the company.

Production at the Mondelez factory in Chirk is mainly the chocolate bean. They are delivered to the site from Ghana before being cleaned and roasted, ready for use in chocolate production.