Grolsch Cartel Fine Annulment: Should Parent Companies Pay for the Anti-Competitive Conduct of a Subsidiary?

September 18, 2011

(by Andreas Stephan) The General Court has annulled a €36.6m fine imposed on Grolsch for the price fixing of beer in Holland. In its decision, the European Commission had treated Koninklijke Grolsch NV and its subsidiary as a single economic entity and calculated fines accordingly.  This is important.  The maximum fine is capped at 10% of turnover and the parent company combines the sales of many subsidiaries.  Taken at face value, the Court ruling could substantially reduce fines and so also their deterrence effect.   Read the rest of this entry »