The Competition Commission of India (CCI) has raided the offices of alcohol giants Pernod Ricard and Anheuser-Busch InBev (AB InBev) amid an investigation into allegations of price collusion with state-owned retailers from the south, Reuters reported, citing sources.

According to the report, the raids, which were carried out in Hyderabad and targeted retailers in Telangana, are among the biggest crackdowns on the industry in recent years.

business today could not independently verify the development.

“We take antitrust compliance very seriously and are cooperating with the authorities,” AB InBev, the maker of Budweiser beer, told Reuters in its response. Pernod Ricard, known for brands such as Chivas Regal, did not immediately respond to a request for comment.

“As a responsible corporate citizen, we comply with Indian laws. We are cooperating with the relevant authorities and rely on them to demonstrate our good faith and compliance,” Pernod Ricard India said. business today.

The recent raids on Pernod’s Hyderabad office stemmed from a case filed by local competitor Radico Khaitan. Last year, Reuters reported that Radico accused Pernod of violating antitrust laws by making deals with retailers in Telangana, offering them “discounts and benefits” in exchange for not selling Radico’s 8PM whiskey brand.

The investigation into AB InBev is related to an investigation that began in July 2022, although details have not yet been disclosed.

CCI raids 2018

In 2018, the CCI also raided the offices of major beer companies, including AB InBev, and launched an investigation into possible cartel behavior. While the inquiry’s findings are not a final verdict, they did raise concerns about the conduct of brewers who dominate India’s $7 billion beer market, accounting for 88% of the industry.

In September 2021, the CCI concluded that companies including United Breweries Limited (UBL), Carlsberg India, SABMiller India (now part of AB InBev India) and the All India Brewers’ Association (AIBA) were involved in a cartel of beer

These companies were found to have coordinated prices, restricted the supply of beer in certain states, shared the market in Maharashtra and coordinated distribution to premium institutions in Bangalore. The CCI imposed a combined penalty of 870 million rupees ($116.75 million) on UBL and Carlsberg India, while AIBA was held responsible for facilitating the cartel.

The case was triggered when AB InBev used CCI’s “leniency program” to reveal that it had detected a cartel while integrating SABMiller’s India operations. Later in 2018, UB and Carlsberg also submitted leniency requests.