The European Commission has launched a formal antitrust investigation to assess whether the energy drink company Red Bull illegally restricted competition in the energy drinks sector, in violation of EU rules prohibiting abuse of market dominance, the institution announced in a statement.
Following unannounced inspections at its headquarters in Austria and various European subsidiaries in 2023, the executive body now suggests it has evidence that Red Bull, known for its 250 ml energy drink, may have developed a strategy across the European Economic Area to restrict competition from energy drinks with volumes exceeding 250 ml in the ‘off-trade’ sales channel — retail locations such as supermarkets and service station shops where beverages are bought for consumption off-site.
One of Red Bull’s main competitors is Monster Energy, which offers energy drinks in volumes greater than 250 ml. It holds the second-largest market share in the energy drink sector, behind Red Bull.
The EU investigation suggests Red Bull’s strategy involved offering monetary and non-monetary incentives to its ‘off-trade’ clients to stop selling rival energy drinks or to disadvantage them when sold in sizes over 250 ml. Additionally, Red Bull allegedly misused its category management position with suppliers to remove these packages or disadvantage them.
Brussels suspects this strategy has been applied at least in the Netherlands, where Red Bull has a dominant market position.
If the suspicions are confirmed, the practices under investigation could breach EU rules prohibiting market dominance abuse.
Red Bull could face a fine of up to 10% of its annual turnover if found guilty of violating European competition rules.
The European Commission will now conduct this in-depth investigation with priority.
[Updated at 11:49 AM]
