The Belgian Competition Authority (BMA) has opened an investigation into brewer AB InBev following ‘serious indications’ suggesting it is abusing its dominant position on the Belgian market. The case centres on concerns about conditions of sale to wholesalers and the hospitality industry.
The watchdog points to a series of reports it has received from across the supply chain about what are called a ‘number of practices’. A formal investigation will now follow.
In response, AB InBev said that for sales of its own beer products to the hospitality industry, the company had ‘the most flexible beverage purchasing contracts in Belgium’ and that it always acted in accordance with local legislation. ‘The existing discount system for drinks retailers dates from 2023 and was reviewed by the competition authority before it came into force’.
The brewer pledged to cooperate with the watchdog’s review.
Complaint from drinks traders
In spring of last year, it emerged that the Federation of Belgian Beverage Traders (Febed) had filed a complaint with the watchdog alleging multiple breaches of competition rules. AB InBev denied any wrongdoing at the time. Febed said it had received 50 to 60 complaints from its members over the past year with regard to AB InBev behaviour intended to stifle competition.
The complaints concerned exclusive agreements for the purchase of beverages by drinks wholesalers, for which there are strict European rules that AB InBev allegedly circumvented. AB InBev also stood accused of engaging in ‘margin squeezing’: this involved the brewer giving higher discounts to the hospitality sector than to drinks wholesalers, making it difficult for the latter to compete.
A third type of complaint centred on discount schemes that AB InBev was accused of imposing on hospitality outlets unilaterally. These encouraged the exclusion of other breweries.
Five years ago, European Commission fined AB InBev for violating European competition rules.