Heineken has been slapped with a US$30 million (A$39.8 million) fine for ‘antitrust’ violations committed by Athenian Brewery (AB), a subsidiary of the Dutch beer producer located in Greece.
The appeal follows a decision by the Hellenic Competition Commission (HCC) in 2015 against AB, which found that for almost 20 years, the subsidiary had engaged in ‘illegal anti-competitive market abuse’ across Greece forcing an illegal policy that excluded local competitors from all channels including bars, restaurants, retail and wholesale markets.
“Following a 12-year 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,” read a statement from the brewery.
The court’s ruling was welcomed by Demetri Politopoulos, co-founder of Macedonian Thrace Brewery (MTB) and competitor of Heineken.
The local beer producer was started by Mr Politopoulos and his brother in 1996 in response to foreign products saturating the market. Earlier this year they filed a lawsuit against Heineken and AB in Amsterdam seeking €100 million (A$149.5 million) 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,” Mr Politopoulos 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.”
He added that Heineken’s market abuse has no place in Greece and that the country, which has been struggling economically for close to a decade, would only succeed with a free and fair market that encourages investment and healthy competition.
“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,” he said.
Heineken spokesman John-Paul Schuirink said the company was reviewing the court’s decision and considering its next steps, reports Courthouse News.
“It is correct that earlier this year Macedonian Thrace Brewery initiated separate legal proceedings against Athenian Brewery and Heineken NV before the Amsterdam Court,” Mr Schuirink said.
“Pending these legal proceedings Heineken NV will refrain from providing any further comments regarding this matter.”