Brewers 'carved up beer market'

BREWING giants Carlsberg and Heineken have clashed with Brussels over allegations that they rigged their home markets. Pundits estimated the brewers could be fined e100m (£60m) between them if they are found guilty.

The European Union Commission claims the Danish and Dutch brewers had agreed 'not to engage in intensive activities in each other's home markets' between 1993 and 1996. 'Market sharing is among the most blatant forms of anti-competitive practice,' it added.

Its 'statement of objections' is a legal step in proceedings under an EC treaty that bans cartels and other damaging business practices. Brussels regulators had raided both brewers in spring 2000.

Carlsberg and Heineken rejected the claims, and said they would study the case and prepare their defence. 'The Commission has blown this case out of proportion,' Carlsberg Breweries chief executive Nils Smedegaard Andersen added.

The brewers have two months to prepare a written reply, after which the EC will take a final decision on whether to fine them.

Last year, the EC fined Belgian beer giant Interbrew e46.5m and Danone, the former owner of Alken Maes beer, e44.6m for fixing prices in Belgium. ING Barings estimated that Heineken might be fined as much as e60m euros and Carlsberg e40m.

Carlsberg said it had not yet considered whether to make a provision for a possible fine or whether it would appeal the EC's final decision.

Brussels said it was also investigating alleged market abuse by major brewers in France, the Netherlands, Italy and Portugal.