Nestlé Appeals 7 Million Euro Fine for Milk Cartel Involvement

Nestlé has decided to challenge a verdict by the Spanish National Court that upheld a 6.8 million euro fine imposed by the National Commission on Markets and Competition. The penalty was related to Nestlé's involvement in a cartel along with major dairy industry players to fix the price of milk at the source.

The appeal was brought to the Supreme Court following similar moves by industry giants Lactalis and Capsa, who are facing more substantial fines exceeding 20 million euros each. The original sanction, part of a broader 80.2 million euro penalty in 2019, targeted a group of eight companies accused of exchanging sensitive information to control milk prices paid to farmers.

Nestlé argues that the competition authority's ruling lacked necessary motivation, resulted in legal insecurity, and improperly applied competition law—specifically failing to consider the legal and economic context properly.

The case is significant as it could open the door to a surge of compensation claims from producers looking for redress for the perceived under-payment for their milk during the cartel's operative years, allegedly spanning from 2000 to 2013.