European Commission Raids Ferrero Offices in Major Antitrust Investigation

The European Commission conducted unannounced antitrust inspections at offices of Ferrero, the maker of Nutella, Kinder, and Tic-Tac, in two EU member states, the company confirmed on Wednesday. Ferrero stated it is aware that on-site inspections are taking place and that it is fully cooperating with investigators. The Commission had announced the raids at the start of the week without naming the company; Bloomberg first identified Ferrero as the target. The Luxembourg-headquartered group, founded in Alba, northern Italy, confirmed the inspections in response to queries from Reuters and other media outlets. „The company is fully cooperating and providing the information requested” — Ferrero spokesperson via Reuters

Brussels suspects market segmentation and cross-border trade curbs The Commission said it suspects the inspected company may have violated EU antitrust rules that prohibit cartels and restrictive business practices, as well as abuses of a dominant market position. Specifically, Brussels is investigating potential market segmentation in the form of restrictions on the trade of goods between member states within the single market, and obstacles to cross-border purchases. Such practices, if proven, could allow a company to charge higher prices in certain national markets to the detriment of consumers. European retailers have long accused large consumer goods companies of maintaining different prices across EU countries and making it difficult for supermarkets to source branded products in bulk across borders. The Commission stressed that the inspections do not imply guilt and do not predetermine the outcome of the investigation. „The inspected company may have violated EU antitrust rules that prohibit cartels and restrictive business practices, as well as abuses of a dominant market position” — European Commission via Corriere della Sera

Mondelez fine offers precedent as Ferrero probe deepens The European Commission has a long record of enforcing competition rules in the food and confectionery sector. Two years before the Ferrero inspections, Brussels imposed a fine of 337.5 million euros on the American biscuit and chocolate giant Mondelez for illegally inflating prices by restricting competition in the EU. The Commission's power to conduct unannounced inspections, often called "dawn raids," is a standard tool in antitrust investigations and does not constitute a finding of wrongdoing. The Mondelez case illustrates the scale of penalties that can follow confirmed violations in the sector. Ferrero is one of the world's largest confectionery groups, employing nearly 50,000 people worldwide, according to reporting by 20minutes. The company reported a turnover of 19.3 (billion euros) — Ferrero annual turnover for 2024 for the year 2024, representing an increase of 4.6% over the prior year. Last year, Ferrero expanded significantly by acquiring the American breakfast cereals group WK Kellogg. The company's scale and cross-border market presence make it a significant subject for any EU single market investigation.

Commission's unnamed announcement gave way to Bloomberg scoop The sequence of disclosure was notable: the Commission announced the raids on Monday without identifying the company, referring only to "a company active in the chocolate confectionery products sector." Bloomberg subsequently named Ferrero as the target, after which the company itself issued a public confirmation. The Commission's practice of initially withholding the name of an inspected company is standard procedure during the early stages of an antitrust inquiry, as investigations can take months or years to conclude. Ferrero's headquarters are in Luxembourg, though the group traces its origins to Alba in the Piedmont region of northern Italy. The company's brands — Nutella, Kinder, and Tic-Tac — are among the most widely distributed confectionery products across EU member states, which may be relevant to the Commission's focus on cross-border trade restrictions. No timeline for the conclusion of the investigation has been announced. 337.5 (million euros) — Mondelez fine for EU competition violations, cited as precedent