Netherlands: Heineken finds EU decision to impose a €219 mil fine excessive and unjustified

Heineken N.V. announced that it has received the decision of the European Commission stating that Heineken and other brewers operating in the Netherlands restricted competition in the Dutch market during the period 1996-1999, according to its news room, April 18. This decision follows an investigation that commenced in March 2000.

As a result of its decision, the European Commission has imposed a fine on Heineken of €219,275,000.

Heineken is highly surprised by the decision and finds the fine excessive and unjustified given the strong arguments that the company put forward to the European Commission.

The company disagrees with the suggestion made by the European Commission that prices in the Dutch market were increased via co-ordinated practices. The company demonstrated to the European Commission that consumer prices in the off-trade (food) market actually declined during the time period in question. In the on-trade (horeca) market, the company’s price increases were in line with the CPI (Consumer Price Index). In addition, Heineken also argued that in the Netherlands, it has absolutely no involvement in the private label segment of the market, one of the areas that the European Commission investigated.

Once it becomes available, Heineken will study the details of the full version of the decision with the intention to appeal. The company has two months and ten days following the receipt of the full decision in which to file an appeal.

The imposed fine will be treated as an exceptional item in this current year and will have no impact on the Heineken N.V. 2007 full-year forecast of 10-13% organic growth in net profit.

Pending any decision on its next steps, Heineken will refrain from further comment.

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