India: Competition Commission of India taking closer look at alleged beer price cartelisation by leading brewers
The Competition Commission of India (CCI) is taking a closer look at beer manufacturers for alleged price cartelisation. CNBC-TV18 has learnt that the top executives of Carlsberg, SABMiller and United Breweries are to be summoned soon by the CCI.
The allegation is that executives colluded to fix beer prices in India between 2007 and October 2018.
In 2018 the Competition Commission of India (CCI) in 2018 had raided the offices of the three brewers, which together account for roughly 90 percent of India's beer market.
A Reuters report earlier in the day said the CCI inquiry found that the companies regularly and collectively strategized in seeking price increases in "several states", forging a cartel the CCI said gave them more bargaining power with state authorities.
The companies also used the All India Brewers Association (AIBA) as a "common platform" to decide collectively on prices; and the local group then lobbied on the companies' behalf for price increases, said the Reuters report, quoting the CCI probe.
United Breweries has responded saying, "The case under reference is currently pending before the Competition Commission of India and the company has extended full co-operation to the relevant authorities throughout the process and will present its submissions to the Competition Commission of India in due course. Since the matter is sub-judice, we do not have any further comments to offer at this stage."
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