WRITTEN QUESTION E-4038/00

by Bart Staes (Verts/ALE) to the Commission

(21 December 2000)

Subject: Breach of European rules on competition

On Tuesday, 13 July 1999, inspectors from the Commission s DG IV went looking for evidence ofmisuse of a dominant position' in the Interbrew's Louvain offices. They found incriminating material and, after two days, came to a series of conclusions.

Interbrew was apparently exchanging information with other brewers. Investment in and promotion campaigns involving clients were jointly coordinated, and it is claimed that the brewers also got together and figured out how they could get a grip on other costs.

In November 1999, DG IV inspectors carried out a number of searches on the premises of the Martens, Alken-Maes and Co.Bra.Ha breweries. That operation resulted directly from the inquiry into Interbrew which had revealed evidence of a cartel having been established.

In October 2000, the four breweries were formally accused and were given just two months in which to defend themselves against the Commission's charges.

The Belgian beer market is not the only one characterised by an oligopoly. On the other European markets, too, there are just a few main players. In Denmark, Carlsberg controls 70 % of the market, while Brau Union controls 56 % of the market in Austria. The Netherlands is dominated by Heineken (60 %), while Heineken and Kronenbourg control 80 % of the French beer market.

The Belgian and Luxembourg markets are the first in respect of which the Commission has initiated a formal procedure alleging breach of the rules on competition.

1. What is the state of play in the infringement procedure initiated against the Belgian and Luxembourg breweries?

2. When will the Commission give a definite answer as to whether or not it will bring formal charges against the companies involved?

3. Will the Commission also shortly be initiating formal infringement procedures relating to breaches of the rules on competition in the other Member States? If so, when?

Answer given by Mr Monti on behalf of the Commission

(19 February 2001)

In July 1999, inspections were carried out at the premises of Interbrew because of alleged infringements of Article 82 (ex Article 86) of the EC Treaty (abuse of a dominant position). This case is pending and should not be confused with the cartel case involving Interbrew, which concerns alleged infringements of Article 81 (ex Article 85) of the EC Treaty. The inspections in October 1999 took place at the premises of Alken-Maes and the Belgian brewers' federation (CBB). No inspections were carried out at the premises of Haacht and Martens.

1. and 2. On 2 October 2000, the Commission addressed Statements of Objections in the cartel case to Interbrew, Alken-Maes, Danone (the parent company of Alken Maes at the time of the alleged infringement), Haacht and Martens.

On the same day, the Commission issued Statement of Objections to brewers in Luxembourg relating to alleged infringements of Article 81 of the EC Treaty. This Statement of Objections is addressed to the following Luxemburg brewers: Bofferding, Mousel-Diekirch, Battin and Wiltz.

Formal proceedings for the infringement of the EC Treaty competition rules begin with the sending of what is known as a Statement of Objections. The Statement of Objections gives a detailed account of the allegations made and explains why the Commission believes that the competition rules have been infringed. The addressees of the Statement of Objections have the right to defend themselves, which means that they can consult the relevant documents and make submissions on the current state of the investigation. They may also produce evidence of their own, and may ask for a hearing at which they can present their defence orally. It is only following these and other procedural safeguards that the Commission will then decide whether it should impose the termination of the conduct at issue. The Commission also has power to impose fines for infringement of the Community competition rules; the level of the fine depends on the gravity and the duration of the infringement.

3. The Commission is currently investigating beer markets in other Member States, involving French, Dutch, Italian and Danish brewers. Surprise inspections have been carried out in all these Member States. These investigations are on-going and therefore the Commission cannot provide any information on the possible outcome of these cases.

For further information, the Honourable Member is referred to the Commission's press release of 2 October 2000(1).

(1) IP/00/1092.