January 13, 2014
Earlier today, the German antitrust authority (the Bundeskartellamt) announced that $145 million in fines had been imposed against five beer manufacturers and seven individuals in a beer price-fixing case (see: First fines imposed in cartel proceedings against breweries).
According to the Bundeskartellamt, the probe began as a result of a leniency application by Anheuser-Busch InBev Germany Holding GmbH, which will escape fines for cooperating in the investigation. Investigations continue against two other brewery groups, four regional breweries and their regional trade association.
Interestingly, according to German authorities, this case involved both communication between competing breweries through personal contacts and telephone conversations, as well as through a regional brewery association for several years (the North Rhine-Westphalian regional brewery association).
The case highlights the risk of unregulated competitor-competitor contacts and communications, both for companies and associations, and the importance for trade and professional associations to adopt and enforce credible competition law compliance programs.
At a minimum, it is prudent for associations to adopt and follow guidelines for key association activities, such as meetings and information exchanges involving competing members, and implement rules prohibiting unmonitored discussions “on the fringes” of legitimate association activities/events.
One practical step companies can take to reduce risk is to determine if a trade association has a compliance program prior to joining (and require that associations have compliance programs as a condition of personnel joining and participating).
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