€273 million fine difficult to swallow for beer cartel — cartels beware!
12 June 2007In news from the European Commission’s competition section that is sure to have beer-lovers cringing, some of the EU’s largest brewers have been given massive fines for engaging in cartel behaviour.
- Heineken NV was the worst effected, facing €219 million in fines.
- Grolsch NV and Bavaria NV were hit with €31 million and €23 million fines respectively.
- InBev NV (manufacturer of Becks and Stella Artois branded beers) was excused by the Commission under its leniency programme for cartel members who provide decisive information regarding the cartel’s operation.
The Commission handed down the fines for conduct relating to the cartel’s operation in the Netherlands; however, the cartel has been found to operate in Belgium, France and Luxemburg. The brewers still face possible civil actions in the courts of member states by victims.
The European Commission’s onerous penalties are evidence of the potential liability that cartel members face around the world. Following the Dawson Bill amendments to the Trade Practices Act (discussed in the October 2006 Competition and Market Regulation Update), readers should be aware that far more onerous punishment is now also possible in Australia.
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