EU Conducts Dawn Raids on Non-Alcoholic Drink Giants Over Competition Concern

The European Commission has initiated unannounced inspections at the premises of companies operating within the non-alcoholic drinks sector across multiple Member States. Concurrently, the Commission has issued a formal request for information to a company in the personal care industry, according to a statement released by the Commission.

The Commission has expressed concerns that these companies may have engaged in activities violating EU antitrust regulations, particularly those prohibiting cartels, restrictive practices, and abuses of dominant market positions, per a statement from the regulatory body. The investigation specifically targets potential trade restrictions within the Single Market and instances of market segmentation. The alleged conduct under scrutiny is believed to be ongoing and involves several Member States.

Officials from the European Commission were joined by representatives from relevant national competition authorities during the inspections, according to a statement. These inspections serve as an initial step in assessing whether anticompetitive practices have occurred. However, the Commission emphasized that the execution of such inspections does not imply any assumption of guilt nor does it prejudge the outcome of the inquiry.

As part of its broader investigative approach, the European Commission has also utilized formal Requests for Information under Article 18(3) of EC Regulation 1/2003. Companies receiving these requests are legally required to provide a complete response within the designated timeframe, per the Commission’s procedures.

There is no fixed timeline for concluding investigations into alleged anticompetitive behavior, as their duration depends on various factors, including case complexity, company cooperation, and the protection of defense rights. Companies found guilty of violating EU competition laws could face substantial fines. However, under the Commission’s leniency program, firms involved in secret cartels may receive immunity or reduced penalties if they disclose wrongdoing and cooperate throughout the investigation.

Individuals and businesses aware of cartel activities or other anticompetitive practices can report them anonymously through the Commission’s whistle-blower tool, providing another avenue for detecting and addressing potential market abuses.

Source: EC Europa