AB InBev to be Investigated by EU Regulators Over Allegation that it Abused Position in Belgium

01 Jul 2016 --- Anheuser-Busch InBev is to be investigated by regulators after it is alleged to have abused its dominant market position in its domestic market of Belgium.

The probe, undertaken by the European Commission, centres on whether the Stella Artois brewer is blocking cheaper imports of its own beer into the Belgian market, a practice known as "parallel trade".

The European Commission said: "Keeping out cheaper imports of its beer from neighbouring countries would be both against the interests of consumers and anti-competitive.”

"AB InBev may be pursuing a deliberate strategy to restrict so-called 'parallel trade' of its beer from less expensive countries, such as the Netherlands and France, to the more expensive Belgian market."

The probe will focus on whether AB InBev is undertaken anti-competitive measures such as changes to packaging of its beer to make it more difficult to sell in other countries, as well as restricting retailers' outside Belgium to rebates.

The accusation is that it is restricting the import of beer from cheaper markets such as the Netherlands to its more expensive domestic market of Belgium.

If found guilty AB InBev, which said it was fully cooperating with the probe, could face a fine of up to 10 percent of its turnover.

The probe comes as AB InBev completes a takeover of rival SABMiller.