Abuse of dominant position

By Pittaluga Abogados

The Uruguayan Commission for Competition Promotion and Defense fined Fábricas Nacionales de Cerveza (FNC), the country´s main beer producer and distributor, with nearly 1.4 million dollars for abuse of dominant position after“restraining the access to Heineken beer in minimarkets”.

Local newspaper El País informed that in 2008, Osanil S.A, importer of Heineken, denounced at the Commission that FNC offered retailers “sales incentives bonuses” conditioned on the “lack of” Heineken sales they made.

According to the Commission, that´s an unfair competition practice and an abusive dominant position which infringes two articles of the Competition Defense Law that state the prohibition of those practices, positions and recommendations that “restrain, limit, block, distort or prevent” present or future competition in the market.

The investigation concluded that when a minimarket sells Heineken, its “probability of obtaining bonuses is reduced in a 3%”.
FNC produces local brands Pilsen, Patricia, Zillertal and Norteña, and distributes Belgium´s Stella Artois. The company argued the resolution, stating that six of the seven Osanil S.A. complaints weren´t confirmed by the Commission, and arguing that those type of bonuses practices are of “pacific use and application” in the Uruguayan law and market.