Tuesday, 17 December 2019

Press Release – Examination of the commitment proposal of the company “DIAGEO HELLAS S.A”

Subject: Examination by the Hellenic Competition Commission of the commitments’ proposal submitted by the company “Diageo Hellas S.A” in the context of an ex-officio investigation by the Directorate-General for Competition for possible infringements of Articles 1 & 2 of law 3959/2011, as well as of Articles 101 & 102 TFEU, in the relevant markets of alcoholic beverages.

The Plenary Session of the Hellenic Competition Commission (HCC) will meet on Wednesday, 18th of December 2020, to examine-following the submission of the Statement of Objections (SO) of the General Directorate of Competition- the proposed commitments in accordance to article 25 par.6 of L. 3959/2011by the company “DIAGEO HELLAS S.A.”, to its commercial policy, concerning possible infringements of Articles 1 & 2 of law 3959/2011, as well as of Articles 101 & 102 TFEU.

In particular, the HCC will examine whether the submitted commitments’ proposal of the company DIAGEO is in accordance with the decision of the HCC, under no. 588/2014, regarding the terms, the conditions and the proceedings for the acceptance of commitments, on the following possible competition problems that arose during the examination of the case, arising from specific commercial policies of the company, in the relevant markets of whiskey and gin, for the on-site consumption channel:

  1. Pouring services, which consist of the exclusive supply of DIAGEO drinks to customers at on-site consumption points, who order without reference to the trademark, simple/plain drinks and/or cocktails and/or the exclusive distribution of alcoholic beverages/cocktails based on DIAGEO products and which the bar/club may offer free of charge to end consumers, and
  2. marketing & visibility serviceswhich consist, inter alia, in the “table setting” with the exclusive placement on the table of products of DIAGEO, during the preparation of the tables of the on-site consumption stores, in the exclusive “display of bottles” of the company DIAGEO in back bar visibility, as well as the provision and placement of constructions, brochures, uniforms for the store staff and other supporting materials of the company DIAGEO

According to the SO proposal, the commitments proposed by the company DIAGEO with regard to itscommercial policy, effectively solve, with ease and for a sufficient period of time, the possible competition problems, leading to immediate restoration of the conditions of effective competition in these markets.

It is recalled that the SO proposal is not binding for the HCC, which will decide taking into account the facts of the investigation and the views of the parties involved.

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