Beer cartelisation: CCI slaps `873-cr fine on UBL, Carlsberg

New Delhi, Sept 24: The Competition Commission of India (CCI) on Friday imposed penalties totalling over Rs 873 crore on United Breweries Ltd, Carlsberg India, All-India Brewers' Association (Aiba) and 11 individuals for cartelisation in the sale and supply of beer.

In its 231-page order, which comes nearly four years after ordering a detailed probe, the CCI has also directed the companies, association and individuals to "cease and desist" from anti-competitive practices.

The final order has been passed against United Breweries Ltd (UBL), SABMiller India Ltd, now renamed as Anheuser Busch InBev India Ltd (AB InBev), and Carlsberg India Private Ltd (CIPL), among other entities.

The regulator did not impose any fine on Ab InBev, while lesser penalties have been slapped on others.

An official release said the companies and other entities have been found to be "indulging in cartelisation in the sale and supply of beer in various States and Union Territories in India, including through the platform of All India Brewers' Association".

As Aiba was found to be actively involved in facilitating such cartelisation, the CCI has held it to be contravening the competition law.

"Giving benefit of reduction in penalty... 100 per cent to AB InBev and its individuals, 40 per cent to UBL and its individuals and 20 per cent to CIPL and its individuals," the release said.

The fines on UBL and Carlsberg India are nearly Rs 752 crore and Rs 121 crore, respectively. A fine of over Rs 6.25 lakh has been imposed on Aiba and various individuals have also been fined by the regulator.

The period of cartelisation was considered 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 the regulator.

As per the release, October 10, 2018, was the date on which the Director General (DG) conducted search and seizure operations at the premises of the beer companies.

Based on evidences of regular communications between the parties collected by the DG during search and seizure, and disclosures made in the lesser penalty applications, the CCI found that the three companies engaged in price coordination, in violation of competition norms, the release said.