The Lower Eastern Times Opening The Third Eye
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The COMESA Competition Commission has found Heineken Holding guilty of engaging in anti-competitive behavior within its distribution network across member countries.
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After a probe launched in 2021, the regional authority concluded that Heineken’s contracts with third-party distributors breached key sections of the COMESA Competition Regulations.
In a ruling issued on March 10, the Commission’s Committee Responsible for Initial Determinations (CID) confirmed that Heineken contravened Article 16(1) by enforcing territorial restrictions, exclusive branding requirements, and fixed minimum resale prices in its distribution deals.
These clauses, according to CID, had the effect of limiting competition and dividing the common market along national lines.
Though Heineken did not admit guilt, it entered into settlement talks with the Commission. Under the terms of the agreement, the company will pay a total administrative fine of $900,000 (equivalent to Sh116.6 million), with $300,000 attributed to each of the three restrictive practices.
“The vertical restraints in Heineken’s distribution contracts have a greater market impact due to the company’s strong position in certain Member States,” the Commission noted.
As part of the deal, Heineken is required to remove all anti-competitive clauses from its distribution agreements and implement corrective actions. This includes conducting a full contract review across the Common Market, training its staff and partners on compliance, and submitting annual compliance reports for the next three years.
Heineken operates in several African markets including Kenya, Nigeria, Egypt, South Africa, Mozambique, and the DRC. The Commission warned that anti-competitive behavior by major players like Heineken could significantly disrupt cross-border trade and competition.
