E-Malt.com News article: Europe: EU fines Heineken, Grolsch, Bavaria 273.8 mln eur over Dutch beer cartel

The European Commission said it has fined Dutch brewers Heineken NV, Royal Grolsch NV and Bavaria NV a total of 273.8 mil Euros over cartel activities in the Dutch beer market in the late 1990s, AFX News Limited reported April 18.

Heinken was fined 219.3 mn eur, Grolsch was fined 31.7 mln and Bavaria was sanctioned 22.9 mln.

The commission said the companies held numerous unofficial meetings between at least 1996 and 1999, during which they coordinated prices and price increases of beer in the Netherlands.

The EU executive added that Belgian brewer InBev SA, although involved in the illegal activity, received no fines as it acted as the cartel whistleblower.

EU competition commissioner Neelie Kroes said: "It is unacceptable that the major beer suppliers colluded to hike up prices and carve up the market between themselves."

"The highest management of these companies knew very well that their behaviour was illegal, but they went ahead anyway and tried to cover their tracks," Kroes added.

The commission launched an antitrust investigation in 2005 into the brewers for alleged cartel activities between 1996 and 1999.

In early Sept 2005, the commission opened its antitrust investigation into the brewers. It sent a ''statement of objections'' to "several brewers" detailing competition concerns.

The EU executive said at the time that "competitors agreed on prices, allocated customers, discussed the conditions of individual customers, exchanged commercially important and confidential market and/or company relevant information and monitored the implementation of these restrictions concerning beer".
It added that the practices affected the price of beer sold both to supermarkets and to hotels, restaurants and cafes.

In Dec 2001, the commission ruled that Interbrew (now InBev) together with French food group Danone engaged in a pact to share the Belgian hotel, restaurant and cafe outlet market and to co-operate over pricing.
In mid-Sept 2002, the commission dropped its investigation into an alleged market-sharing agreement between Carlsberg AS and Heineken.


18 April, 2007