Bottom of the Barrel

The Competition Commission of India has cracked down on a range of beer producers, nailing a cartel that was fixing beer prices and levying hefty fines. These include some of the biggest names in the business. How was this done and how can it be stopped?

- Shivanand Pandit

Srightly pronounced by Adam Smith: “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” In dia, cartels are present in both the manufacturing and service industries, indicating the scandalous interconnection between legislators and capitalists.

For alleged cartelization in the sale and supply of beer, the competition watchdog, Competition Commission of India (CCI) has levied fines of Rs 873 crore on United Breweries Limited (UBL), Carlsberg India Pvt Ltd (CIPL), All India Brewers Association (AIBA), and 11 other individuals. They were also penalized for their connection in organizing talks between beer companies on different matters, including pricing. An Anheuser Busch InBev India was also found to be a component of the cartel fixing beer prices but the company did not face a penalty as it was the first entity to give main proof in the inquiry.

The CCI found UBL, CIPL and SABMiller India Limited to have been involved in price coordination, delivery constraints, and market share in various states in violation of the law. In 2016, SABMiller India was acquired by Anheu ser Busch InBev and renamed Anheuser Busch InBev India Limited.