The European Commission has launched a formal investigation into unfair practices by Red Bull. The Austrian energy drink manufacturer is alleged to have abused its dominant position as “category captain” to disadvantage competitors.
Not only in the Netherlands?
The European Commission says it has evidence that Red Bull has developed a tactic to disadvantage competitors in supermarkets and gas station stores. The manufacturer is alleged to have offered retailers financial and non-financial incentives to remove competing products with a content of more than 250 millilitres from their range or to place them in less visible locations.
Specifically, the manufacturer is said to have abused its role as a so-called “category captain” to limit the presence of competing brands. In doing so, Red Bull is said to have focused on the energy drinks sold by its closest competitor. That company is not named in the press release, but those in the know assume it is Monster.
This is the Commission’s first formal investigation into possible abuse of a category management position by a supplier. The Commission fears that Red Bull has applied this anti-competitive strategy “at least” in the Netherlands. The formal investigation follows an unannounced search in March 2023.
