Heineken must pay 111 million euros to Greek rival over market abuse

Heineken has been ordered by the Amsterdam District Court to pay 111.2 million euros in damages to Greek beer producer MTB. The ruling follows an earlier finding by Greece’s competition authority that Athenian Brewery (AB), a Heineken subsidiary, had abused its dominant position in the Greek beer market for years. The court held Heineken responsible as AB’s parent company.

The court found that Macedonian Thrace Brewery (MTB), the Greek producer of Vergina beer, missed out on profits over 16 years, resulting in losses of 43.3 million euros. A further 67.9 million euros in interest brings the total to 111.2 million euros, as the abuse of market dominance began in 1998.

The dispute dates back years. In late 2015, Greece’s competition authority fined AB 31.5 million euros for allegedly undermining competition over an extended period.

The country’s largest brewer was found to have made exclusive agreements with retailers, offering them discounts in exchange for not selling rival beers. The restrictions on consumer choice also contributed to higher beer prices across the market, according to the allegations.

Heineken has announced that it will appeal the ruling, saying it respects the legal process but disagrees with key aspects of the judgment.

“In our view, damages claims of this magnitude should be based on facts and a realistic representation of market conditions,” a spokesperson said.

The company argues that the damages calculation partly relies on hypothetical assumptions about MTB’s revenue, prices and profitability. “In our view, such assumptions must be carefully tested against the available economic evidence and market developments during the relevant period,” the spokesperson said.