The European Commission has confirmed that it has conducted raids on a company in the energy drinks sector in several EU countries, suspecting the company of being involved in a cartel and abusing its dominant position.
The identity of the company has not been revealed, but Austrian energy drinks maker Red Bull has confirmed that its premises were searched. Red Bull is based in Fuschl-am-See in western Austria and was founded by Dietrich Mateschitz, who passed away in October 2022.
Mateschitz’s son, Mark Mateschitz, now owns Distribution and Marketing GmbH, which holds 49 percent of Red Bull shares, while the Thai Yoovidhya family owns the rest.
The European Union acts as the competition watchdog in the 27-country bloc and has the power to levy fines of up to 10% of a company’s global turnover for breaching antitrust rules.
The Commission has expressed concern that the inspected company may have violated EU antitrust rules that prohibit cartels and restrictive business practices. The Commission also believes that the company may have violated EU antitrust rules that prohibit abuses of a dominant position.
It should be noted that the fact that the Commission conducts inspections does not automatically mean that a company is guilty of anti-competitive behavior, nor does it prejudge the outcome of the investigation itself.
The duration of an investigation depends on several factors, including the complexity of each case, the extent to which the undertakings concerned cooperate with the Commission, and the scope of the exercise of the rights of defense. There is no legal deadline for completing inquiries into anticompetitive conduct.
As part of a leniency programme by the Commission, companies involved in a secret cartel may be granted immunity from fines or significant reductions in fines in return for reporting the conduct and cooperating with the Commission throughout its investigation. Companies found guilty of breaching EU antitrust rules can face significant financial penalties.
In conclusion, the EU antitrust regulators have conducted raids on a company in the energy drinks sector in several EU countries, suspecting the company of being involved in a cartel and abusing its dominant position.
The identity of the company has not been revealed, but Red Bull has confirmed that its premises were searched.
Companies found to have breached EU antitrust rules face significant financial penalties, and as part of a leniency programme, companies involved in a secret cartel may be granted immunity from fines or significant reductions in fines in return for reporting the conduct and cooperating with the Commission throughout its investigation.