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The Competition Commission of India (CCI) has ordered a probe against French spirits major Pernod Ricard and seven other entities, including Indo Spirits, Pathway HR Solutions, and Universal Distributors, for alleged cartelisation in the Indian-made foreign liquor market. The regulator has taken this step due to prima-facie evidence of restrictive conduct by Pernod Ricard with its retailers and wholesalers, aimed at inducing brand pushing and achieving higher market share in Delhi.
The CCI's Director General will carry out the investigation, which will also examine the role of individuals responsible for the conduct of the entities and those whose consent or connivance was involved during the alleged contraventions.
The complaint was filed before the CCI in 2024, and the regulator has issued a 26-page order, dated May 5, outlining the reasons for the probe.
The investigation will focus on whether Pernod Ricard's conduct falls within the purview of 'exclusive dealing agreement' under the Competition Act, which prohibits such practices.
The CCI's probe is expected to be completed in the coming months, and the regulator will take further action based on the findings of the investigation. The entities involved are likely to respond to the allegations and cooperate with the investigation in the immediate next steps.