Court decision sees Heineken facing $30 million fine in Europe

HEINEKEN has been slapped with a $30 million fine, but things could get a lot worse for the Dutch beer giant.

A COURT has upheld the judgement in favour of an independent brewer and slapped Heineken with a $30 million (A$39.8 million) fine for “antitrust” violations committed by a subsidiary of the Dutch producer.

The appeal came after a 2015 decision by the Hellenic Competition Commission (HCC) against Heineken’s subsidiary Athenian Brewery (AB) in Greece and found it engaged in “illegal anti-competitive market abuse” for almost 20 years in Greece.

The HCC found AB forced an illegal policy to exclude local competitors from “all channels” — including bars, restaurants, retail and wholesalers.

Along with Heineken, the brewer sells Alfa and Amstel in Greece.

“Following a 12-year-long HCC investigation, the longest in its history, Athenian Brewery was found to have systematically abused its dominant market position in violation of Greek and EU competition law,” a statement from the brewery read.

Macedonian Thrace Brewery welcomed the appeals court judgment against Heineken’s 98.8 per cent-owned Greek operating company and is claiming the decision could mean a judgment against Europe’s biggest brewery for damages exceeding 100 million euro.

The brewery, as competitor of Heineken, described the ruling as “damning”.

Heineken could be forced to pay even more money in damages.

“The Competition authority and now the appeals court has reaffirmed the full extent and intensity of Heineken’s breaches of antitrust regulations in Greece,” Demetri Politopoulos, one of MTB’s founders said.

“Due process has triumphed despite Heineken’s disingenuous refusal to accept responsibility and their unrelenting efforts to overturn a sound decision.

“Heineken’s longstanding market manipulation must now give way to fair competition and Heineken must compensate those who have been materially damaged, including MTB.

“Greece will only succeed economically with a free and fair market that encourages investment and healthy competition.

“This kind of market abuse has no place in our country. We believe that ultimate responsibility for years of market abuses lies at Heineken’s head office in Amsterdam which is why we have sued both Heineken and Athenian Brewery in the Netherlands, to finally get to the root of this problem.”

Heineken spokesman John-Paul Schuirink said the company “is reviewing the decision and considering its next steps,” according to Courthouse News.

“It is correct that earlier this year Macedonian Thrace Brewery has initiated separate legal proceedings against Athenian Brewery and Heineken N.V. before the Amsterdam Court,” Schuirink said.

“Pending these legal proceedings Heineken N.V. will refrain from providing any further comments regarding this matter.”

Macedonian Thrace Brewery was founded in 1996 by brothers Michael and Demetri Politopoulos who felt the Greek market was saturated with foreign-owned products.