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AB InBev

European Commission threatens the world’s largest brewery AB InBev with 2 billion EUR fine

The European Commission threatens the world’s largest brewery Anheuser-Busch InBev SA with 2 billion EUR fine because of abusing with its dominant position on the Belgian market. The European authorities initiated investigation against the company for violation of the import of its cheaper products like Jupiler and Leffe, produced in the Netherlands and France. The EC has found that AB InBev sells Jupiler and Leffe in these countries at much lower prices than in Belgium, given the greater competition on the market.

Following the investigation, the European Commission may impose fine of up to 2% from the turnover of the company or approximately 2 billion EUR.

According to preliminary data, AB InBev has been able to prevent supermarkets and wholesalers from buying Jupiler and Leffe beer at lower prices in the Netherlands and France. It’s about a number of actions and practices that the company has been implementing since 2009, including changing the labels and packaging for these brands of beer.

The European Commission notes that the warning it sends to AB InBev is not a final result of the company’s investigation that began in 2016.

The world’s largest brewery, Anheuser-Busch InBev, was set up in 2008 after the merger of Belgium’s InBev and American Anheuser-Busch. In October 2016, AB InBev completed the takeover of the British company SABMiller. The company has annual; revenues of 45.52 billion USD and 200,000 employees worldwide.

About Manuel Fajardo

Manuel Fajardo is from Brazil, living in Porto Alegre. He works in Finance Apprise Journal, as analysts and content writer. In my responsibilities are finance and business news for Latin America, Asia and Australia.

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