The Belgian Competition Authority (BMA) has launched an investigation into brewing giant AB InBev, following complaints by the Federation of Belgian Beverage Traders about possible abuse of market dominance. The federation alleges anti-competitive behaviour through exclusive purchasing agreements, margin squeezing and discount schemes.
Complaints about market dominance
Febed accuses AB InBev of abusing its dominant market position to eliminate competitors. According to the federation representing 200 independent beverage traders, on-trade outlets get better buying conditions than beverage centres and dealers would receive higher discounts the more AB InBev products they sell. This would be at the expense of smaller breweries and alternative suppliers. Moreover, it says exclusivity contracts for the on-trade would circumvent European regulations.
AB InBev denies the allegations, stating that their purchasing contracts and discounts are in line with Belgian and European regulations. In fact, the beer giant claims to have “the most flexible liquor purchasing contracts in Belgium“, Belgian news outlet VRTNWS reports. “The existing discount system for beverage retailers dates back to 2023 and has been reviewed in advance by the BMA”, spokesperson Aron Wils said. Nevertheless, the BMA says it sees “serious indications” of possible infringements.
AB InBev has been the subject of a competition investigation before: in 2019, the European Commission imposed a fine of 200 million euros for practices that hindered cross-border trade between Belgium and the Netherlands. If AB InBev is found guilty again, severe sanctions could follow that could dramatically alter market dynamics.
