The Competition Commission of India (CCI) on Thursday directed the Maharashtra Wine Merchants Association, Pune District Wine Merchants Association and Association of Progressive Liquor Vendors to cease and desist from anti-competitive conduct.
The matter pertains to a complaint received by the The antirust regulator which alleged that these associations have been operating as a cartel by collectively prescribing conditions on manufacturers, distributors and sellers of alcoholic beverages, including stipulations on retail margins, new product launch schemes etc.
Mandating NOCs
Based on the investigation, the CCI found that these associations were violating certain sections of the Competition Act by imposing mandatory requirements on alcoholic beverages manufacturers to obtain NOCs prior to launching new products.
The commission also found out that these associations were issuing circulars, emails, and other communications to their members prescribing or influencing pricing, margins, discounts, payment terms, transportation charges, that were ought to be independently determined by each enterprise.
No Monetary Penalty Due to Welfare Activities
In its order, CCI didn’t impose any monetary penalty on the erring parties on the grounds that a penalty would adversely affect the financial viability of these associations, and would lead to the discontinuation of various welfare-oriented activities undertaken for the benefit of small and vulnerable liquor retailers.