Heineken was fined the largest amount - $594 million - as it has the largest share of the market. Photo / Herald On Sunday
Heineken was fined the largest amount - $594 million - as it has the largest share of the market. Photo / Herald On Sunday
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The Dutch brewing giant Heineken has been fined £219 million ($594 million) by European regulators after being found guilty of operating a beer cartel with other brewers.
Grolsch was fined £31.7 million ($86 million) and Bavaria £22.9 million ($62 million) while InBev, which makes Stella Artois, escaped penaltyafter it effectively blew the whistle and provided information to investigators.
The three brewers are expected to contest the fines.
Heineken received the biggest fine as it has the largest share of the market, accounting for more than 50 per cent of sales. It received the seventh-largest fine ever handed out by EU competition authorities.
The European Commission ruled that Heineken, Grolsch, Bavaria and InBev ran a cartel in the Netherlands between 1996 and 1999, stifling competition and colluding to fix prices.
An investigation was launched seven years ago after the commission uncovered a cartel involving InBev in Belgium.
InBev then provided information about other cartels in other European countries, under the auspices of the commission's leniency policy.
The Competition Commissioner, Neelie Kroes, said: "It is unacceptable that the major beer suppliers colluded to hike up prices and carve up the market between themselves.
"The highest management of these companies knew their behaviour was illegal, but they went ahead anyway and tried to cover their tracks."
The commission said it had evidence showing the firms had held meetings to co-ordinate prices and price increases to licensed premises and supermarkets in the Netherlands.
A spokesman for Heineken said it was "highly surprised" by the decision, calling the fine "excessive and unjustified". The company intends to appeal.
