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EU Probes Chocolate Price Fixing

Hershey, Mars, others suspected of conspiracy

By Jane Yager,  Newser Staff

Posted Feb 20, 2008 6:22 AM CST

(Newser) – The European Commission suspects candy giant Hershey of conspiring with other chocolate and candy manufacturers in an industry-wide price-fixing scheme, AP reports. Both Hershey and rival Mars recently received requests for information from the commission after some 50 civil lawsuits in the US have alleged price fixing. The two companies say they are cooperating.

 A Canadian investigation of price-fixing among Hershey, Mars, Cadbury and Nestle became public in November 2007, and the German government last week launched an inquiry accusing Mars, Nestle, Kraft and four other confectionery producers of a price-rigging conspiracy. While the US has the world's largest candy market, Europeans are the biggest per-capita consumers of sweets.

Stacks of different types of large Hershey's chocolate bars are seen on a shelf in a downtown Pittsburgh candy store on Thursday, April 19, 2007. The Hershey Co., the nation's largest candymaker, is under scrutiny at home and abroad for alleged price fixing. (AP Photo/Keith Srakocic)
Stacks of different types of large Hershey's chocolate bars are seen on a shelf in a downtown Pittsburgh candy store on Thursday, April 19, 2007. The Hershey Co., the nation's largest candymaker, is under...   (Associated Press)
A smoke stack of the Hershey chocolate plant is seen in  Hershey, Pa., in this Feb. 15, 2007 file photo. Unionized workers at The Hershey Co. are expected to finish voting Friday, March 30, 2007 on whether to accept a tentative agreement that would keep two hometown factories open but...
A smoke stack of the Hershey chocolate plant is seen in Hershey, Pa., in this Feb. 15, 2007 file photo. Unionized workers at The Hershey Co. are expected to finish voting Friday, March 30, 2007 on whether...   (Associated Press)
Hershey's chocolate syrup is seen for sale at a grocery store in New Delhi, India, Thursday, April 19, 2007. America's leading candymaker, The Hershey Co., is seeking to join its top competitors on more candy shelves in places like India and China as it makes a bid to expand its...
Hershey's chocolate syrup is seen for sale at a grocery store in New Delhi, India, Thursday, April 19, 2007. America's leading candymaker, The Hershey Co., is seeking to join its top competitors on more...   (Associated Press)
An array of Hershey's extra dark assortment chocolates is seen in North Andover, Mass. in this April 19, 2007 file photo. Hershey's is the largest of the candy companies accused of price fixing. (AP Photo/Elise Amendola, file)
An array of Hershey's extra dark assortment chocolates is seen in North Andover, Mass. in this April 19, 2007 file photo. Hershey's is the largest of the candy companies accused of price fixing. (AP Photo/Elise...   (Associated Press)
Chocolate bars from Mars are pictured in a store in Gelsenkirchen, Germany, in this Feb. 11, 2008 file photo. The German cartel office is investigating seven leading chocolate producers for illegal price fixing. (AP Photo/Martin Meissner, file)
Chocolate bars from Mars are pictured in a store in Gelsenkirchen, Germany, in this Feb. 11, 2008 file photo. The German cartel office is investigating seven leading chocolate producers for illegal price...   (Associated Press)
Nestle chocolate bars are seen in a store in Beijing Friday, April 20, 2007. America's leading candymaker, The Hershey Co., is seeking to join its top competitors on more candy shelves in places like India and China as it makes a bid to expand its global presence.(AP Photo/Greg Baker)
Nestle chocolate bars are seen in a store in Beijing Friday, April 20, 2007. America's leading candymaker, The Hershey Co., is seeking to join its top competitors on more candy shelves in places like...   (Associated Press)
Bars of Cadbury milk chocolate are seen on a shelf of a store in London, Tuesday, June 19, 2007. Confectionery and drinks giant Cadbury Schweppes today announced plans to cut its global workforce by around 15 per cent, equivalent to around 7,5000 jobs. The company employs an estimated 50,...
Bars of Cadbury milk chocolate are seen on a shelf of a store in London, Tuesday, June 19, 2007. Confectionery and drinks giant Cadbury Schweppes today announced plans to cut its global workforce by around...   (Associated Press)
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