Brussels, 06/12/2001 (Agence Europe) - The European Commission has just taken negative decisions affecting the beer market in Belgium and Luxembourg. They concern two separate cartels on the Belgian market and an agreement involving three Luxembourg breweries.
- Belgium. The Commission has imposed fines on several companies for a total amount of over EUR 91 million for having taken part in two secret and separate agreements on the Belgian brewery market. The infringements consist of market sharing, price fixing and information exchange. The investigation began in 1999 after a search carried out at the Interbrew premises, by far the largest Belgian brewery and the second largest worldwide, Alken-Maes and the Confédération des brasseries de Belgique (CCB) during which the Commission had seized evidence showing they were indeed two separate agreements. The parties to the first agreement were Interbrew and Alken-Maes and Danone, the parent company of the latter at the time. These companies had concluded several anti-competitive agreements in the Horeca sector as well as in the retail sector between 1993 and 1998. Such practices had the specific feature of involving the CEOs themselves and other decision-makers who met on a regular basis to supervise the unfolding of operations. The agreements mainly consisted in a "non-aggression pact" (limits to advertising investment in the Horeca sector), price fixing for retail sales and a monthly exchange of detailed information on sales volumes in the two sectors. During the inquiry, Interbrew informed the Commission of the existence of another agreement involving itself, Alken-Maes, Haacht and Maartens, between October 1997 and July 1998, on the market for beer sold under distributing brands in Belgium. The parties wanted to avoid a price war and to consolidate the existing customer breakdown and had agreed to exchange information on their clients. The Commission considered these two agreements were very serious infringements to European rules and therefore imposed heavy fines on the parties involved. Thus, Interbrew has received a fine of a total of EUR 46.487 million, Danone/Alken-Maes EUR 44.628 million, Haacht and Martens each EUR 270,000. The Commission took into account the dominant position held by Interbrew on the Belgian market, on one hand, and the repeated offence of Danone, although on another market (flat glass). The French group also threatened Interbrew with hampering its extension on the French market if it did not stick to its commitments, which is another aggravating circumstance. The companies have three months in which to pay the fine.
- Luxembourg. The Luxembourg companies Brasserie Nationale-Bofferding, Brasserie de Wiltz and Brasserie Battin have been sanctioned by the Commission for having taken part in a market sharing agreement in the Horeca sector in Luxembourg, with a fine of EUR 448,000 in total. A fourth company, Brasserie de Luxembourg (Interbrew subsidiary), escapes a fine for having denounced the cartel. The inquiry, opened in February 2000, had revealed the existence of an unlimited duration agreement signed in 1985 by the parties to protect their clientele, and providing for each party to agree not to provide beer to Horeca clients bound by an exclusive purchase agreement or "beer clause" to one of its partners. Financial penalties were foreseen in the case of failure to respect the clauses. The convention also contained provisions aimed at hampering penetration of the Horeca sector in Luxembourg by foreign breweries. Any company cooperating with the latter or distributing their beer could be excluded from the agreement. These practices are completely counter to the European competition rules and the Commission is imposing the heaviest fine on the Brasserie Nationale-Bofferding (EUR 400,000) and fines of EUR 24,;000 each to the Brasserie de Wiltz and Brasserie Battin. The companies have three months in which to pay up.
