Bid to call time on strong beers risks breach of competition law
A CLAMPDOWN by local authorities on superstrength alcoholic drinks could be pushing retailers into breaching competition law, MPs have warned.
More than 100 councils are trying to reduce alcohol abuse by telling retailers not to stock strong beers and ciders. New licences are often being granted only to those that promise not to stock higher-strength drinks.
The moves, which started in Ipswich but have spread across the country, are unpopular with brewers who say that strong beer – which is still much weaker than wines and spirits – is being unfairly targeted and consumers who like stronger, premium craft beers are being hit.
There are also fears that retailers are being pressured into dropping products and are inadvertently colluding with other retailers, thus leaving them open to prosecution under competition regulations.
Parliamentary Beer Group chairman and Burton Tory MP Andrew Griffiths told The Mail on Sunday: ‘There is an increasing number of examples of local authorities bullying shopkeepers to take part in these schemes, with threats of the loss of their licence if they don’t comply. Given that we have evidence that some of these schemes could be illegal, I’m concerned that councils are overstepping their powers.’
A spokesman for the British Beer and Pub Association said: ‘We are doing our best to make sure that retailers are staying on the right side of the law. We’re advising them that they shouldn’t r remove products from the shelves just because the local authorities suggest they should, and we have asked the Competition and Markets Authority to be clearer in its guidance.’ The European Commission is thought to be examining the schemes.
Last week the CMA issued new advice to retailers on how to avoid breaking competition law.
The CMA admitted that some high-strength schemes, or how they are implemented, may possibly carry competition law risks and recommended retailers did not discuss the schemes with other retailers.