AmBev pays multi million fine to settle with trust busters

The millstones of justice turn exceedingly slowly. After ten years, the Brazilian unit of AB-InBev has settled its dispute over a fine of 352.7 million reais (USD 185 million) with the Administrative Council for Economic Defence, or CADE, which had found its reseller loyalty programme anti-competitive.

CADE launched its investigation of the practice in 2004 when AmBev’s rival Grupo Schincariol filed a complaint. Initially, AmBev challenged the 2009 fine, which was then lowered to 229.1 million reais, but has now agreed to abide by the original decision, both parties announced in July 2015.

The settlement puts an end to any lawsuits, tax foreclosures and other procedural issues related to CADE’s investigation.

CADE said it based the size of the 2009 fine both on AmBev’s large market share — it accounts for nearly 70 percent of Brazil’s beer sales — and the programme’s aim to encourage resellers to make sure that at least 90 percent of the beer they sell comes from AmBev.

In addition to the fine, the tribunal also determined that the programme should be terminated. AmBev confirmed in a separate statement that it had been.