Andhra Pradesh among states defrauded by beer firms

Amaravati: Andhra Pradesh is one of the states in the country in which some beer companies and also the All India Brewers Association (AIBA) resorted to cartelisation in the sale and supply of beer.

The Competition Commission of India (CCI) which took up the issue passed a final order against three beer companies, United Breweries Limited (UBL), SABMiller India Limited (now renamed Anheuser Busch InBev India Ltd after being acquired by Anheuser Busch InBev SA/NV) and Carlsberg India Private Limited (CIPL), for indulging in cartelisation and other irregularities.

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 October 10 of 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 evidence 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 and sections of the Competition Act, 2002 in the States of Andhra Pradesh, Karnataka, Maharashtra, Odisha, Rajasthan, West Bengal, National Capital Territory of Delhi and the Union Territory of Puducherry.

The companies also have collectively restricted supply of beer in the states of Maharashtra, Odisha and West Bengal in contravention of the provisions and in sharing of market in the State of Maharashtra as well as coordination with respect to supply of beer to premium institutions in the city of Bengaluru in contravention of the provisions.