The fair trade regulator has directed United Breweries (UBL) to pay penalty of approximately Rs 750 crore.
Competition Commission of India (CCI) on Friday (24 September) has imposed penalties on three beer makers as well as their trade association All India Brewers' Association (AIBA) for cartelisation.
CCI passed a final order against UBL, SABMiller India (now known as Anheuser Busch InBev India) and Carlsberg India for indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India.
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').
The period of cartel was held to be from 2009 to at least 10 October 2018, with Carlsberg India joining in from 2012. AIBA served as a platform for facilitating such cartelisation since 2013.
"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 Carlsberg India and its individuals," the release said.
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The CCI directed UBL and Carlsberg India to pay penalties of approximately Rs 750 crore and Rs 120 crore respectively, besides passing a cease-and-desist order.
Based on evidences, CCI found that the three companies engaged in price co-ordination in Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, National Capital Territory of Delhi and the Union Territory of Puducherry.
The firms were collectively restricting beer supply in Maharashtra, Odisha and West Bengal. The companies were sharing market in Maharashtra and co-ordinating beer supply to premium institutions in Bengaluru.
Further, the fair trade regulator also found co-ordination among UBL and AB InBev for purchase of second-hand bottles.
Shares of UBL tumbled 3.01% to Rs 1606.50 on Friday. In the past one month, the stock has risen 10.50% as against 7.31% rise in the Sensex. It has 74.49% in the past one year compared with 64.28% surge in the Sensex.
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