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Fair trade watchdog CCI fines United Breweries, Carlsberg for cartelisation |
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New Delhi, Antitrust watchdog Competition Commission of India (CCI) has imposed penalties of Rs 750 crore and Rs 120 crore on United Breweries Ltd (UBL) and Carlsberg India Pvt Ltd (CIPL) respectively for indulging in cartelisation.
Besides penalties, the CCI also passed a cease-and-decease order (direction to stop illegal activities) against the beer brewers.
"Giving benefit of reduction in penalty under the provisions of Section 46 of the Act of 100 per cent to AB InBev (formerly SABMiller India) and its individuals, 40 per cent to UBL and its individuals and 20 per cent 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," an official statement from Ministry of Corporate Affairs.
Based on evidences of regular communications between the parties collected by the Director General (DG) during search and seizure, and on the basis of the disclosures made in the lesser penalty applications, the 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 in various states.
CCI also found co-ordination amongst UBL and AB InBev with respect to purchase of second-hand bottles.
Further, four individuals each of UBL and AB InBev, six of CIPL and the Director General of All India Brewers’ Association (AIBA) were held by CCI to be liable for the anti-competitive conduct of their respective companies and association.
The beer makers used the platform of AIBA for indulging in cartelisation in the sale and supply of beer in various states and Union Territories (UTs), the CCI found.
The period of cartel was held to be from 2009 to at least October 10, 2018 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.
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