Radeberger accepts fine for collusion before heading to court

On 12 June 2018, one day before the start of the German beer cartel trial in Düsseldorf, the German Radeberger Group withdrew its objections to the fine imposed on the brewer by the Federal Cartel Office.

Though it will be paying up, this does not mean an admission that Radeberger was involved in price fixing, the firm said. Radeberger will continue to contradict the allegations of the Cartel Office.

The story so far. At the beginning of 2014, the Federal Cartel Office imposed fines totalling EUR 338 million (USD 457 million) on eleven German brewers, one regional brewers’ association and 14 managers from the beer industry for price fixing in the Noughties.

It was one of the highest antitrust fines ever issued by the authorities and had been made possible because AB-InBev had turned whistle blower.

While most breweries accepted the penalties and paid up, Carlsberg and Radeberger decided to head to court to contest the fines. Two thirds of the total fine – around EUR 220 million – were slapped on those two brewers. But going to court is risky as the court is free to set a new fine. In the past, it often tended to issue even higher penalties than the Cartel Office.

In the end, Radeberger, which is Germany’s major brewer and part of the privately-owned food company Dr. Oetker Group, saw sense and explained its decision not to stand trial with “incalculable financial risk”. Therefore, settling out of court and paying an estimated EUR 160 million (USD 185 million) was a “purely entrepreneurial decision”. The case against Radeberger will be closed.

A verdict in Carlsberg’s court case is not expected before the autumn.