Fair trade regulator CCI has dismissed charges of abuse of market dominant position against spirits-maker William Grant & Sons' three group firms with respect to purchase and sale of liquor in India.
The Competition Commission of India (CCI) has ruled out violations of Competition norms by -- William Grant & Sons, William Grant & Sons International and William Grant & Sons Distillers -- in an order made public today.
According to the fair trade watchdog, the firms prima facie "were not dominant in the relevant market within the meaning of...The (Competition) Act and therefore, the issue abuse their position in the relevant market would not arise,"
A complaint filed by Global Tax Free Traders, an exclusive distributor of William Grant & Sons, alleged that the firms had imposed exorbitant, unfair and discriminatory prices which were possible only due to the dominant position enjoyed by them in the liquor market in the country.
It was alleged that the companies permitted import of their products into India through a number of entities such as Delhi Duty Free Services and other private companies, at prices much lower than those charged from the complainant.
However, CCI noted that the firms which were the third largest producer of 'scotch whiskey' had around 10 per cent market share after Diageo and Pernod Ricard in the world.
For the Indian market, CCI noted that United Spirits Ltd. (USL) held more than 50 per cent of the market share in whiskeys followed by various other alcoholic beverages manufacturing companies.
"The percentage of imported liquor in India is very minimal, around 3 per cent," CCI said.
"Therefore, in such a scenario, it cannot be said that opposite parties (William Grant & Sons) were dominant in any of the alternative relevant market definitions...," it added.
Headquartered in United Kingdom, William Grant & Sons is engaged in the production, sale, marketing and distribution of spirits. It offers scotch whisky, single malts, handcrafted single malts, gin, and other spirits.
