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According to a report in the Financial Times, a Dutch court has ruled that Heineken is responsible for competition violations linked to its Greek subsidiary, Athenian Brewery, dating back to the 1990s. This decision by the Amsterdam District Court could expose the brewer to potential fines totaling hundreds of millions of euros.
The case traces back nearly a decade when Greece’s competition authority imposed a €31.5 million fine on Athenian Brewery in 2015 for engaging in anti-competitive behavior between 1998 and 2014. The Hellenic Competition Commission (HCC) found that Athenian Brewery had attempted to exclude competitors from important venues like bars, restaurants, and hotels, restricting their growth over a fifteen-year period. The fine was later upheld by the Administrative Appeals Court in Athens but reduced to €26.7 million in 2017.
Following this ruling, two of Heineken’s competitors filed separate lawsuits in Dutch courts seeking damages. One claim came from Macedonian Thrace Brewery (MTB), and the other from Olympic Brewery, a Greek subsidiary of Carlsberg. In its 2023 annual report, Heineken revealed it has set aside €478 million to address these potential liabilities.
Athenian Brewery, which sells brands such as Alfa, Amstel, and Heineken, controls 50% of the Greek beer market. Carlsberg holds a 31% share with brands like Fix and Mythos, while MTB has a 5% market share with Vergina beer.
The court’s ruling will determine if MTB suffered any damages and how much liability Heineken bears. MTB is seeking at least €162 million in compensation from both Heineken and Athenian Brewery. Carlsberg has also confirmed it has a pending claim related to this competition case, although specific details have not been disclosed.
Demetri Chriss, director of business development at MTB, called the judgment a victory for independent brewers across Europe who have faced challenges from large multinational companies. A spokesperson for Heineken characterized the ruling as a “technical legal decision,” emphasizing that any damages would only be calculated after further review and that predicting the outcome is difficult.
The court concluded that Heineken exerts significant control over Athenian Brewery, holding 98.8% of its shares through Heineken International BV and overseeing its board and management. The judgment indicated that both Heineken and Athenian Brewery are considered part of the same economic entity under competition law, making Heineken jointly liable for the violations confirmed by Greek authorities.
Heineken must submit a response to the ruling by December 4.
[Source: Financial Times]
