Heineken has been ordered to pay EUR111m (US$124.6m) in a judgment that directly connects the group to an anti-competitive ruling in Greece against its unit in the country.
The fine, handed down by the District Court of Amsterdam today (21 October) follows a decision in 2015 by the Hellenic Competition Commission that found in favour of domestic beer brand owner Macedonian Thrace Brewery (MTB) against Heineken’s Athenian Brewery. While MTB has welcomed the latest development, Heineken has said it will appeal the judgement.
Eleven years ago, the commission found that Athenian Brewery had abused its position in Greece’s beer market for around 16 years to the detriment of competition, including MTB. An initial fine of just over EUR31m (then-US$34.9m) was reduced on appeal to EUR26.7m in 2017.
MTB subsequently pursued damages of its own, culminating two years ago in the Amsterdam District Court finding that Heineken and Athenian Brewery “form part of a single economic undertaking and are therefore jointly and severally liable for the harm caused”, according to MTB.
Despite taking the matter further, including to the European Court of Justice and the Dutch Supreme Court, Heineken was still ruled to be liable.
“The Amsterdam District Court’s judgment goes a long way in setting the record straight,” said MTB’s director of business development, Demetri Chriss. “This is one of the most significant milestones in MTB’s history, as it recognises hard work, careful planning and dedication.”
When contacted by Global Drinks Intel, Heineken shared a statement in which it said it will appeal today’s punishment.
“Heineken respects the Court and the legal process,” the statement read. “At the same time, Heineken respectfully disagrees with important aspects of the Court’s decision.
“In our view, damages claims of this scale should be grounded in evidence and reflect the commercial realities of the market. The damages assessment relies in part on assumptions about MTB’s sales, pricing and profitability in a hypothetical market scenario.
“In our view, those assumptions should be carefully tested against the available economic evidence and market developments during the relevant period. We do not believe the damages awarded adequately reflect those considerations.”
Today’s decision comes in the same month as new CEO Rafa Oliveira assumed his position, taking over from Dolf van den Brink, who had notified Heineken at the start of this year of his intention to step away.
