Beer Drinkers File Antitrust Lawsuit Against Bud Buyout September 11, 2008
News Summary
Belgian brewer InBev's proposed buyout of Anheuser-Busch would violate U.S. antitrust laws and should be blocked by the courts, according to a group of beer drinkers who filed suit this week.
The Associated Press reported Sept. 10 that the lawsuit filed in St. Louis -- Anheuser-Busch's home town -- was backed by 10 beer drinkers who say they would be affected by increased prices if the merger goes through. The lawsuit is exclusive of any regulatory review by the U.S. Justice Department, which often scrutinizes large business acquisitions.
"If InBev is allowed to purchase Anheuser-Busch, there no longer would be any significant major potential competitor to influence pricing and marketing practices in the United States," according the the lawsuit.
"This is bigger than us," said plaintiff Barry Ginsburg of St. Louis. "We all have a pretty good idea what happens when people have a monopoly, and when it's a foreign company that has a monopoly."
While maneuvering to acquire Anheuser-Busch this summer, InBev officials said the deal would not violate antitrust regulations because InBev is only a minor player in the U.S. beer market. "We believe that the claims alleged in the lawsuit are without merit and we intend to vigorously defend against them," said Gary Rutledge, vice president of legal and government affairs for Anheuser-Busch, this week.
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