CCI penalises beer companies for indulging into cartelisation

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Competition Commission of India -CCI
Competition Commission of India -CCI

The Competition Commission of India (‘CCI’) passed a final order against three beer companies, namely United Breweries Limited (‘UBL’), SABMiller India Limited (now renamed as Anheuser Busch InBev India Ltd. after being acquired by Anheuser Busch InBev SA/NV) (‘AB InBev’) and Carlsberg India Private Limited (‘CIPL’) for indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India, including through the platform of All India Brewers’ Association (‘AIBA’).

As AIBA was found to be actively involved in facilitating such cartelisation, CCI also held AIBA to be in contravention of the provisions of Competition Act, 2002 (the ‘Act’), apart from the beer companies. The period of cartel was held to be from 2009 to at least 10.10.2018 (the date on which the Director General (‘DG’) conducted search and seizure operations at the premises of the beer companies), with CIPL joining in from 2012 and AIBA serving as a platform for facilitating such cartelisation since 2013. All three beer companies were lesser penalty applicants before CCI.

Based on evidences of regular communications between the parties collected by the DG during search and seizure, and on the basis of the disclosures made in the lesser penalty applications, CCI found that the three companies engaged in price co-ordination in contravention of the provisions of Section 3(3)(a) of the Competition Act, 2002 (the ‘Act’) in the States of Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, National Capital Territory of Delhi and the Union Territory of Puducherry, in collectively restricting supply of beer in the States of Maharashtra, Odisha and West Bengal in contravention of the provisions of Section 3(3)(b) of the Act, and in sharing of market in the State of Maharashtra as well as co-ordination with respect to supply of beer to premium institutions in the city of Bengaluru in contravention of the provisions of Section 3(3)(c) of the Act. CCI also found co-ordination amongst UBL and AB InBev with respect to purchase of second-hand bottles. Further, 4 individuals of UBL, 4 individuals of AB InBev, 6 individuals of CIPL and the Director General of AIBA, were held by CCI to be liable for the anti-competitive conduct of their respective companies/ association, in terms of Section 48 of the Act.

Giving benefit of reduction in penalty under the provisions of Section 46 of the Act of 100% to AB InBev and its individuals, 40% to UBL and its individuals and 20% to CIPL and its individuals. The CCI directed UBL and CIPL to pay penalties of approx. Rs 750 crore and Rs 120 crore respectively, besides passing a cease-and-desist order.

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Saurabh
Saurabh Sinha, Editor of IndianBureaucracy.com, is known for his credible, precise and insightful coverage of governance, civil services and administrative developments in India. Under his leadership, the portal has grown into a trusted national platform for accurate updates, appointments and policy movements within the bureaucratic ecosystem. Saurabh’s strong professional networking and deep understanding of government functioning enable him to present timely, reliable and well-contextualised information to readers across sectors. As a thought-driven editor, he promotes informed dialogue on governance reforms while maintaining high editorial standards. His calm, consistent and detail-oriented approach continues to strengthen the portal’s reputation. इंडियनब्यूरोक्रेसी.कॉम के संपादक सौरभ सिन्हा देश की नौकरशाही, शासन व्यवस्था और प्रशासनिक गतिविधियों की विश्वसनीय तथा संतुलित रिपोर्टिंग के लिए जाने जाते हैं। उनके नेतृत्व में यह पोर्टल नियुक्तियों, नीतिगत बदलावों और प्रशासनिक खबरों का एक भरोसेमंद राष्ट्रीय स्रोत बन चुका है। शासन तंत्र की गहरी समझ और मजबूत पेशेवर नेटवर्क के कारण सौरभ पाठकों को समयबद्ध, सटीक और संदर्भित जानकारी प्रदान करते हैं। एक विचारशील संपादक के रूप में वे सुशासन, पारदर्शिता और सुधारों पर सकारात्मक संवाद को बढ़ावा देते हैं। उनकी शांत, सूक्ष्म और पेशेवर संपादकीय शैली पोर्टल की प्रतिष्ठा को लगातार मजबूत कर रही है।