Antitrust proceedings in the case of the Red Bull beverage manufacturer

The European Commission opened formal antitrust proceedings on Thursday to assess whether Red Bull unlawfully restricts competition in the energy drinks sector, violating EU competition rules that prohibit the abuse of a dominant position in the market.

In the issued statement, the Commission wrote that it had information indicating that the Austrian company could have developed a strategy for the entire European Economic Area to restrict competition from other energy drinks with a capacity of more than 250 ml sold in places such as supermarkets and petrol station shops.

As explained, this strategy was to consist in: granting financial and non-financial incentives to retailers to stop selling or limit competitive exposures energy drinks with a capacity of more than 250 ml and abusing its position vis-à-vis retailers in order to induce them to stop selling or limit the offer of competing products.

“Red Bull's strategy was alleged to have been directed specifically against energy drinks marketed by its closest competitor,” the Commission said in a statement. The Commission suspects that Red Bull has implemented this strategy at least in the Netherlands.

“We want to investigate whether these practices may be keeping prices high and limiting consumers' choice of energy drinks. This investigation is part of the Commission's ongoing efforts to enforce competition rules in the food supply chain to the benefit of European consumers,” said Teresa Ribera, EU Competition Commissioner.

A company's violation of EU antitrust regulations may result in a fine of up to 10%. its annual sales revenues. (PAP)

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