Diageo controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
UK watchdog investigates Diageo’s proposed purchase of Chase Distillery
Investigation
In January 2021, the UK Competition and Markets Authority began examining Diageo’s planned acquisition of Chase Distillery. The regulator considered whether the transaction could create a relevant merger situation and significantly reduce competition in UK markets. The review concerned the proposed purchase itself, and the available source does not record a final outcome or further findings.
Company response
Ongoing disclosure — Diageo
A Diageo spokesperson said: “We are engaging with the CMA to ensure that it can conclude its enquiries as quickly as possible.”
Source excerpt
A Diageo spokesperson said: “We are engaging with the CMA to ensure that it can conclude its enquiries as quickly as possible.”
However, the Competition and Markets Authority (CMA) published a notice of its intention to inspect the deal on 7 January.
The CMA said it was considering whether the transaction, if completed, will result in the creation of a relevant merger situation under the Enterprise Act 2002 and, if so, whether that move could result in a significant fall in competition within any markets in the UK for goods or services.
2020
Distributor inventory and sales-target allegations
The SEC alleged that Diageo pressured distributors to purchase products beyond market demand in order to meet performance objectives. Diageo agreed to a $5 million settlement.
2011
Foreign Corrupt Practices Act settlement
U.S. regulators alleged that Diageo subsidiaries made improper payments to foreign officials to obtain sales and tax advantages for certain whisky brands and other products. Diageo agreed to pay more than $16 million to resolve the civil allegations.