Biggest brewery fined nearly US$1.0M on antitrust violations

Santo Domingo.-  The Competition Defense Commission (Pro Competition) on Mon. announced a RD$46.3 million (US$926,000.0) fine against the Dominican National Brewery (CND) for “abuse” of its dominant position in the production, marketing and distribution of beer in the Dominican Republic market.

Chairwoman Yolanda Martinez said through Resolution 018-2018 the Board voted to unanimously levy the maximum sanction established by law, of three minimum wages in the sector.

She said the resolution also orders the “cessation of abusive behavior and the nullity of contracts signed under these conditions, establishes a penalty of 3% of the amount for each day left to pay and warned that the law allows the doubling of the fine in case of repeated offenses.”

The Resolution indicates that the CND controls over 98% of the market and “abusing this position” imposes restrictions that have no objective and economic justification, such as the imposition of resale prices; cornering of the market through exclusivity contracts for distribution, marketing, promotion and advertising; restrictions of visibility and space in shelves of competing brands.