Watchdog closes investigations into beer cartel and issues EUR 231 million in fines
The antitrust watchdog bared its teeth yet again and issued a total of EUR 231.2 million in fines against Carlsberg Germany, Radeberger, a host of smaller regional brewers (Bolten, Erzquell, Früh and Gaffel), the Association of Rhine – Westphalian breweries as well as against seven brewery executives. The penalties were issued on 2 April 2014.
If you add the EUR 231.2 million to the previously issued fines of EUR 106.5 million, that brings total fines against German brewers to EUR 338 million.
According to media reports, Carlsberg was fined EUR 62 million and the two brewers from Cologne, Gaffel and Früh, EUR 3 million each. That leaves Radeberger, Germany’s major brewer, to face a fine of over EUR 150 million alone.
No wonder that in view of the steep penalties, Carlsberg, Radeberger, Gaffel and Früh all said they were innocent and would fight the fines in court.
However, many think that their cases will not be overturned in court. After all, the trustbusters must have got hard-to-disprove material from whistleblower AB-InBev against the cartel culprits or they would not have issued such hefty fines – nor would they have allowed AB-InBev to go scotch free.
Most likely, the brewers fined now are only buying time by taking their cases to court. Because – as their reckoning will go – by the time the court issues its final verdicts, most Germans will have forgotten the whole affair.
Andreas Mundt, President of the Federal Cartel Office, said: "With today's verdict, we have completed the antitrust proceedings against the beer industry. We have fines totalling around EUR 338 million against eleven companies, the Brewery Association NRW and 14 personally responsible individuals. The fines imposed affect beer manufacturers that represent over half of all beer sold in Germany. Industry turnover is well over EUR 7 billion per year. Given these sales, the high fines are appropriate and necessary in order to achieve an effective punishment."
The latest fines, except the previous ones which have been accepted by the brewers concerned, are not yet final as Carlsberg, Radeberger et al. have decided to appeal with the Higher Regional Court of Düsseldorf.
The Cartel Office also said that it has closed its investigation into a beer cartel by several Cologne brewers due to inconclusive evidence.
