In October 2021, anonymous complaints emerged about Brew Union’s conduct, leading to a headquarters search in Linz in April 2022. Following extensive investigations and confirmed suspicions of unacceptable behavior, the Federal Competition Authority (BWB) has recommended imposing an “appropriate fine” against the company due to violations of abuse and cartel prohibitions.
The Cartel Court has the authority to levy fines of up to 10 percent of the group’s turnover from the previous year. In 2022, Brau Union generated a turnover of 850.6 million euros, as reported by the “WirtschaftsCompass.” The BWB accused Brew Union of leveraging its dominant market position to intimidate beverage customers and prevent them from purchasing beer unless they also bought other beverages from Brew Union.
Criticism of Brew Union’s market power has been ongoing, particularly from independent Austrian breweries such as Stiegl and Ottakringer. Brew Union, the Austrian market leader, has seen its market share increase during the pandemic due to a price war. The company, owned by Heineken since 2003, encompasses brands like Gösser, Zipfer, and Puntigamer, among others.
Formed in 1998 through the merger of Österreichische Brau AG and Steirerbrau, Brew Union operates 15 beer brands and nine breweries with 2,700 employees. The company’s alleged anti-competitive practices have raised concerns in the industry and prompted the BWB’s call for punitive action from the Cartel Court.
