15 October, 2021
The present suo motu action was initiated by the CCI for alleged cartelisation in relation to the production, marketing, distribution, and sale of beer in India. After a detailed probe, the CCI directed the companies, association, and individuals to cease and desist from indulging in any practice, conduct, activity, which has been found in the present order to be in contravention of the provisions of the Competition Act, 200
CCI observed that 3 (three) companies were engaged in price coordination, collectively restricting the supply of in sharing of the market in various States and Union Territories in India through the platform of All India Brewers' Association (“AIBA”). AIBA was found to be actively involved in facilitating such cartelisation, thus contravening the provisions of the Competition Act, 2002.
CCI found the existence of a nation-wide cartel amongst the parties, and that the ‘relevant turnover/profit’ of the parties to be the turnover/profit earned by the parties from the sale and purchase of beer and ancillary products like beer bottles in India, during the cartel period.
CCI observed that, in cases of cartelisation, CCI is empowered to impose upon the contravening entities, penalty of up to 3 (three) times of its profit for each year of the continuance of the cartel, or 10% (ten percent) of its turnover or each year of the continuance of the cartel, whichever is higher. Accordingly, the quantum of penalties to be imposed was determined by the CCI.
Furthermore, CCI contended that for the purpose of Competition Act, 2002, the information used in the order does not qualify for a grant of confidential treatment. In conclusion, CCI held these companies liable for the anti-competitive conduct of their respective companies, associations and penalties totalling over INR 8,730,000,000 (Rupees eight point seven three billion) was imposed.
Please click here to read the CCI order.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
