UBL, Carlsberg India, AIBA and others fined Rs 873 crore for cartelization in beer sale

The Competition Commission of India (CCI) has imposed penalties totaling over Rs 873 crore on United Breweries Ltd (UBL), Carlsberg India, All India Brewers’ Association (AIBA) and other individuals for cartelization in the sale and supply of beer in various states and union territories. A final order has been passed against three beer companies – UBL, SABMiller India Ltd (now renamed as Anheuser Busch InBev India Ltd) and Carlsberg India Private Ltd.

An official statement said the three companies have been found to be indulging in cartelization in the sale and supply of beer in various states and UTs in India, including through the platform of AIBA. As AIBA was found to be actively involved in facilitating such cartelization, the CCI has also held to be contravening the competition law.

“Giving benefit of reduction in penalty 100% to AB InBev and its individuals, 40% to UBL and its individuals and 20% to CIPL and its individuals,” the statement said. “The CCI directed UBL and CIPL to pay penalties of approximately Rs 750 crore and Rs 120 crore respectively, besides passing a cease-and-desist order.”

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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 cartelization 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 cartelization since 2013. All three beer companies were lesser penalty applicants before the regulator. The Director General conducted search and seizure operations on October 10, 2018 at the premises of the beer companies.