German brewers fined for price-fixing cartel

Five German breweries and seven individuals have been fined by the Bundeskartellamt (Federal Cartel Office) over illegal price-fixing agreements for beer. Bitburger, Krombacher, Veltins, Warsteiner and Barre, along with seven people, were collectively fined €106.5 million for the offences.

AB InBev avoided a fine after alerting the authority and agreeing to act as a key witness in the case.

“As a result of our investigations we were able to prove the existence of price-fixing agreements between breweries; most of which were based purely on personal and telephone contact,” said Andreas Mundt, President of the Bundeskartellamt.

“The price increases of €5 to €7 per hectolitre for draught beer in 2006 and 2008 were agreed on this basis. In 2008 a price increase was agreed for bottled beer with the intention of making the 20-bottle crates €1 more expensive.”

During the course of the proceedings, AB InBev, Bitburger, Krombacher, Veltins and Warsteiner cooperated with the Bundeskartellamt in compliance with the authority’s leniency program. In addition, the Bundeskartellamt reached a settlement with all five of the breweries that received fines, in order to terminate the proceedings.

The breweries’ cooperation in the proceedings was taken into account when the fines were determined.

Investigations are still ongoing against two further brewery groups. Four regional breweries and their regional association in the North Rhine-Westphalia region are being investigated for their involvement in a regional price-fixing group.

The Bundeskartellamt says the decisions relating to the fines are not yet final and may be appealed in the Düsseldorf Higher Regional Court.