EU opens antitrust investigation into Red Bull over alleged competition restrictions
EU investigates Red Bull for allegedly limiting competition and disadvantaging rival energy drink brands across the bloc.
AUSTRIA – The European Commission has launched a formal antitrust investigation into Red Bull to assess whether the energy drink manufacturer engaged in practices that unlawfully restricted competition within the European Economic Area (EEA).
The inquiry focuses on potential efforts by the Austria-based company to limit the market visibility and sales of competing energy drinks, particularly those sold in sizes larger than 250ml in the off-trade sector.
According to the Commission, officials have “indications” that Red Bull may have implemented a strategic approach aimed at curbing competition from rival brands in retail channels such as supermarkets and petrol station shops.
The alleged conduct is believed to have targeted products sold by Red Bull’s “closest competitor”, although the Commission did not disclose the company’s identity.
Regulators are paying close attention to activities in the Netherlands, where Red Bull reportedly holds a dominant position in the national market for the wholesale supply of branded energy drinks.
The investigation will examine whether Red Bull used its influence to hinder competing brands through two key practices.
First, the Commission is assessing whether the company provided monetary or non-monetary incentives to off-trade retailers to delist or reduce the prominence of rival energy drinks packaged above 250ml.
Second, investigators are evaluating whether Red Bull misused its role as category manager in certain retail outlets to disadvantage competitors.
Category management agreements allow retailers to delegate decisions related to product assortment, placement and promotional strategy to a specific supplier.
The Commission noted that this is the first investigation involving a potential abuse linked to the misuse of category management responsibilities by a supplier.
If confirmed, such conduct could violate EU competition rules that prohibit the abuse of a dominant market position.
The investigation follows a series of “unannounced inspections” conducted by EU officials at Red Bull’s headquarters and several EEA locations in March 2023.
Additional inspections were carried out at the company’s Brussels premises in June, August and September 2023.
Red Bull contested the inspection decisions before the EU General Court and sought to suspend the ongoing Brussels inspections.
In September 2023, the court’s president rejected the suspension request, and last month, the General Court dismissed Red Bull’s broader challenge, ruling that the inspection decision was “well founded” and based on sufficient evidence.
The Commission emphasised that there is no predetermined deadline for concluding antitrust proceedings. The duration of such cases typically depends on their complexity and the extent of cooperation from the companies involved. It added that the opening of formal proceedings does not prejudge the outcome.
Teresa Ribera, executive vice-president for clean, just and competitive transition, said the Commission aims to determine whether the alleged practices may have kept consumer prices high and limited product choice across the energy drinks market.
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