New Delhi. The Competition Commission on Friday imposed a total fine of Rs 873 crore on United Breweries Limited (UBL), Carlsberg India and All India Brewers Association (AIBA) and 11 others for factionalism in the sale and supply of beer in several states and union territories. . The decision comes four years after a detailed inquiry was ordered in which the commission, in its 231-page order, directed these companies, organizations and individuals to give up and refrain from anti-competitive practices in future.
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The Competition Commission of India (CCI) has passed a final order against three beer-makers UBL, SAB Miller India Limited now named Anheuser Busch Inbev India Limited (AB InBev), and Carlsberg India Private Limited. The regulator did not impose any penalty on Ab Inbev while others have been fined less.
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UBL and Carlsberg, the major players in the India beer market, have said they are reviewing the order. The commission said in a base statement, “These companies have been found indulging in activities like collusion in the sale and supply of beer in many states and union territories of the country. The CCI said that the platform of All India Brewers Association (AIBA) was also found to be misused and it was found to be actively involved in facilitating such collusion which is in contravention of the norms of the Commission.
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UBL and Carlsberg India fined
Giving the benefit of reduction in penalty, 100 per cent benefit has been given to AB InBev and its individuals, 40 per cent to UBL and its individuals and 20 per cent to CIPL and its individuals, the statement said. The regulator has imposed a fine of about Rs 752 crore and Rs 121 crore on UBL and Carlsberg India respectively. The same AIBA and various individuals have been fined more than Rs 6.25 lakh. According to the commission, the factional period carried out by these companies is considered to be from 2009 to at least October 10, 2018. It was included in CIPL 2012 and AIBA in 2013. All the three beer companies had applied for lower fines before the regulator.
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