Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Five German breweries fined for illegal price fixing, (Jan 13, 2014)
Organizations Mentioned:Anheuser-Busch InBev Germany Holding GmbH | Bitburger Braugruppe GmbH | C. & A. Veltins GmbH & Co. KG | Krombacher Brauerei Bernhard Schadeberg GmbH & Co. KG | Privat-Brauerei Ernst Barre GmbH. | Warsteiner Brauerei Haus Cramer KG
The Bundeskartellamt, the German competition authority, has imposed fines totaling €106.5 million against five breweries for engaging in price fixing. The fines against the Bitburger, Krombacher, Veltins, Warsteiner and Barre national brewery groups, as well as seven individuals, were triggered by an application for leniency filed by Anheuser-Busch InBev.
It was determined by the authority that price increases for draught and bottled beers were agreed upon by the named breweries in joint meetings and bilateral contacts and at meetings of the North Rhine-Westphalian regional brewery association.
“As a result of our investigations we were able to prove the existence of price-fixing agreements between breweries; most of which were based purely on personal and telephone contacts,” said Andreas Mundt, President of the Bundeskartellamt, announcing the fine. “The price increases of five to seven euros per hectolitre for draught beer in 2006 and 2008 were agreed on this basis. In 2008 a price increase was agreed for bottled beer with the intention of making the 20 bottle crates one euro more expensive”.
It was noted that Bitburger, Krombacher, Veltins and Warsteiner, as well as AB InBev, cooperated in the investigation under the authority’s leniency program. Their cooperation, allowing a settlement to be reached with all five breweries to terminate the cartel proceedings, were considered as mitigating factors in determining the amounts of the fines, the Bundeskartellamt stated.
Investigations are still ongoing against two other brewery groups and four regional breweries in North Rhine-Westphalia and their regional association for their involvement in a regional price fixing arrangement, it was noted.
Companies: Anheuser-Busch InBev Germany Holding GmbH; Bitburger Braugruppe GmbH; Krombacher Brauerei Bernhard Schadeberg GmbH & Co. KG; C. & A. Veltins GmbH & Co. KG; Warsteiner Brauerei Haus Cramer KG; Privat-Brauerei Ernst Barre GmbH.
News: Antitrust