The European Commission has opened a formal antitrust investigation into Red Bull, suspecting the company of engaging in practices that may restrict competition in the energy drinks sector. This investigation is focused on whether Red Bull has abused its dominant market position in violation of EU competition rules.

Evidence suggests that Red Bull may have developed a strategy across the European Economic Area (EEA) to limit competition from energy drinks larger than 250ml, particularly in off-trade channels such as supermarkets and petrol stations. The Commission is particularly concerned about practices in the Netherlands, where Red Bull allegedly holds a dominant position in the wholesale supply of branded energy drinks.

Two suspected anticompetitive practices are under scrutiny: first, providing incentives to off-trade customers to delist or disadvantage competing energy drinks over 250ml; and second, misusing its role as a category manager to influence the visibility and availability of these competing products.

This investigation marks the first formal inquiry into the misuse of category management positions by suppliers to limit competition. If the allegations are proven, Red Bull could face significant penalties for breaching EU competition laws.

The Commission has prioritized this investigation and will conduct a thorough review. The opening of the investigation does not imply any predetermined outcome.

Red Bull, headquartered in Austria, has faced scrutiny before, including unannounced inspections by the Commission in 2023. The company has challenged the legality of these inspections and is currently contesting decisions related to the reimbursement of costs incurred during the investigation process.

EU competition rules, specifically Article 102 TFEU and Article 54 of the EEA Agreement, prohibit the abuse of a dominant position that may affect trade and restrict competition within the Single Market. The investigation will continue without a set deadline, depending on various factors including case complexity and cooperation from the involved parties.