AB InBev in the sights of the Belgian authorities. What does the beer giant risk? What practices would pose a problem?

A formal investigation was therefore opened. “The opening of this investigation does not, however, prejudge its possible outcome.still underlines the authority, with the usual caution.

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What exactly are we talking about? On the ABC side, we obviously want to be quite discreet as the investigation is underway. AB InBev has the particularity of being a “vertically integrated” group: it is both a producer of beers, but also a trader/distributor of its products and finally a large real estate owner, particularly of cafes (Editor’s note: this is the case for AB InBev but also the Horeca Logistic Services group or Duvel Moortgat). It would seem that we are talking here about practices which would prevent other beer wholesalers from having competitive access to the market or cafes and restaurants from freely sourcing from suppliers other than AB InBev. This could thus involve pricing practices distorting competition or exclusive supply contracts imposed by AB InBev at certain Horeca points. It is in fact not uncommon for a lease contract to be conditional on the part of the operator of a café being obliged to obtain supplies only from the brewer who owns the business. It would therefore be a system where AB InBev locks access to the market at different levels which would be under the magnifying glass of the ABC.

It seems that the complaint here comes from FeBeD, the Belgian Federation of Beverage Distributors. “This type of practice which links for an operator of a Horeca point a lease contract with an exclusive supply contract with a supplier like AB InBev or another large brewer is a real problem in the Horeca sector because it kills competition and prevents, for example, access for micro-breweries to cafes and restaurants. Now, it remains no less true that traders and brewers today remain of great financial assistance when starting a Horeca operation”explains Matthieu Léonard, president of the Horeca Brussels Federation.

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The duration of the procedure? It is, at this stage, impossible to predict. “It all depends on the position of AB InBev, with whom we have a very constructive dialogue. This could last two or three years if we complete the procedure and which could lead the Belgian Competition Authority to impose remedies, or even a fine. But it could also be shorter if, as part of the dialogue we have with AB InBev, the group puts on the table a certain number of proposals to allay the concerns of market players. Everything will depend on the evolution of the instruction”, explains Damien Gerard, auditor general at the Belgian Competition Authority.

In theory, if AB InBev’s anti-competitive practices were to be demonstrated, the Belgian-Brazilian brewing giant risks a fine of up to 10% of global turnover. It would obviously be an earthquake. But this is obviously totally premature and very theoretical at this stage. Since the establishment of this possibility of financial sanction in 2019, the Belgian Competition Authority has never had to reach this point.

In a reaction, AB InBev, led by Michel Doukeris since 2021, indicates that it always acts in accordance with local legislation and offers the most flexible beverage supply contracts in Belgium for the sale of its own beers to the Horeca sector. “The current system of discounts for drinks distributors dates from 2023 and was seen by the Belgian Competition Authority before its entry into force.he adds. The group says it wants to collaborate constructively on the instruction.

Finally, let us point out that in addition to AB InBev, bpost is also currently in the sights of the Belgian Competition Authority.