Argentina: Quilmes accused of abusing dominance

Argentinian brewers CCU have accused the legendary beer brand Quilmes of abusing its dominant position and engaging in other unfair competition practices. The complaint is under analysis by the country’s competition authority, which has already opened a probe to determine whether global brewing giant Ab InBev (Quilmes) has conditioned or prevented the entry of new competitors by wielding exclusivity agreements in exchange for benefits, such as the delivery of cheap, or even free, merchandise.

Quilmes strongly denies these agreements. “There are some business arrangements, but they are not exclusive and nobody is blocked,” said a source from the Belgian group, whose brands control 74% of the local market.

“Quilmes is the main player on the market. And by means of exclusive contracts, they make it difficult for our products to arrive at supermarkets, corner-stores and bars “, explains Pablo Fazio, CEO and founder of Otro Mundo beer, who a few weeks ago filed a similar complaint before the CNDC. “This that we now denounce,” he added, “is not an isolated act: it is a systematic practice by Ab InBev around the world,” he said.

Full Content: Clarín

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