Heineken fined for breaching competition law in Hungary

Hungary | Heineken was fined approximately USD 41,000 in Hungary for breaking competition law through an exclusive supplier agreement with a venue in Budapest, media reported on 19 September.

The Hungarian Competition Authority (Gazdasági Versenyhivatal – GVH) said the local subsidiary of the Dutch brewer had “breached the law when it made a contract about being almost exclusively the only supplier of beer of a venue in the capital city”.

The so-called Hungarian “beer law”, which was passed in 2020, aims to increase the selection of drinks available in hospitality venues by limiting exclusive supplier agreements to support smaller manufacturers.

A beer market threesome

It came after the country’s three Big Brewers – Heineken, Borsodi (Molson Coors), and Dreher (Asahi) – had apparently failed to honour their voluntary commitment, made in 2015, to cut sales volumes under exclusivity contracts.

Combined, the three Big Brewers control more than 90 percent of domestic beer production, which stood at 5.6 million hl in 2022. There are 79 breweries in Hungary as of 2023.

Heineken fined again

According to the 2020 legislation, venues can only purchase up to 80 percent of their beverage supplies from the same company in each beverage category.

The GVH now fined Heineken Hungária HUF 15 million (USD 40,750) and forced it to set up an internal compliance programme.

“Heineken Hungária is committed to maintaining the highest business ethics. We consistently comply with local legislation, prioritising the well-being and satisfaction of our consumers and customers. As it is an ongoing legal process, we are unable to comment at this time,” the brewer said in a statement to local news outlets.

Already in October 2020, the Hungarian Competition Authority had fined Heineken HUF 75 million (USD 204,000) for failing to properly report on its commitment to reduce sales to on-premise venues with which it has exclusivity contracts.