EU Antitrust Proceedings Against Red Bull

The antitrust investigation aims to examine whether Red Bull has unlawfully restricted competition and abused its dominant market position, the EU Commission announced on Thursday.

Red Bull Allegedly Restricted Competition Illegally

There are indications that Red Bull has given supermarkets and gas stations "monetary" and "non-monetary" incentives to prevent the sale of competing products. The Brussels competition authorities fear that Red Bull may have pursued such a strategy at least in the Netherlands. It is said to be directed primarily against the largest competitors of the energy drink manufacturer. The biggest competitor is the US energy drink manufacturer Monster Energy. Accordingly, Red Bull is said to have attempted to stop or disadvantage the sale of competing brands to its customers, for example, through poorer visibility in stores. According to the Commission, this concerns energy drinks with more than 250 milliliters of content.

Possible Influence on Red Bull Competitor Products as "Category Manager"

Additionally, the company is said to have used its position as a so-called "Category Manager" to remove competing products from the range or place them less favorably. In category management agreements, stores like supermarkets transfer the marketing of a product category - for example, energy drinks - to a specific supplier. The role of a Category Manager can extend not only to the supplier's products but also to the products of competitors. The Category Manager can thus influence the assortment, placement, and advertising of competitor products in a store.

According to the Commission, this is the first time it has investigated a possible abuse of a category management position. If the suspicion is confirmed, Red Bull could have violated the prohibition of abuse of a dominant market position. The EU Commission emphasized that the initiation of the proceedings does not imply a preliminary decision on the outcome of the investigation. The antitrust investigation was preceded by raids at Red Bull in March 2023.

(APA/Red)

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