AB InBev avoids fine in price-fixing scheme

AB InBev, the largest brewing concern in the world, has escaped its share of the €106 million fine handed down to the members of a cartel of brewers for unfair competition. The Leuven-based brewer was spared because it agreed to provide evidence against the other partners in the price-fixing scheme.

The companies – five German brewers and AB InBev – were accused of price-fixing between 2006 and 2008, when they all agreed to raise the price of crates of bottled beer at the same time, in order to avoid competing fairly with each other. Such arrangements are illegal under European law and under the laws of member states.

AB InBev took part in the cartel, until at one point it decided to co-operate with the authorities and inform them of the details of the scheme. Because of that, the company escaped paying a share of the €106.5 million in fines handed out by the Bundeskartelamt, the German cartel authority.

The German brewers that took part in the price-fixing arrangement were Bitburger, Krombacher, Veltins, Warsteiner and Ernest Barre. In addition, seven individuals associated with the companies were also fined.

Germany is Europe’s biggest beer market, consuming close to 100,000 hectolitres a year. The five brewers cited in the complaint are among the most dominant on the market. AB InBev’s main brand in Germany is Beck’s, which was in fourth place in 2012 with 2.78 million hectolitres.

The investigation continues into two additional large brewery concerns and four regional brewers. 

photo courtesy of Anandt4u/Wikimedia Commons