INSUBCONTINENT EXCLUSIVE:
Breweries colluded to fix beer prices, two people with direct knowledge told Reuters.The Competition Commission of India (CCI) launched the
investigation after AB InBev told the watchdog it had detected an industry cartel, leading in 2018 to dawn raids at the three brewers'
offices to collect evidence.The investigation has found that 15-20 executives from the three brewers were involved in discussions of beer
prices before they were submitted to state regulators, thereby violating antitrust laws, said the two sources, who declined to be named as
the report is not public."The evidence seized by the CCI during searches last year was enough to nail the culprits," said one of the
sources.AB InBev, the world's largest brewer, whose offerings include Budweiser and Corona, told Reuters it would not be appropriate to
comment at this time, but said it takes antitrust compliance "very seriously".Carlsberg, which sells beer under its own-name brand and also
owns Tuborg, declined to comment on Friday, but has previously said it is "committed to complying" with all relevant laws.United Breweries,
which is part-owned by Heineken and known for its Kingfisher brand, said it is "given to understand" the investigation report has been
submitted to the CCI, and will present its case during the commission's hearing.The company added that it had made complete disclosures to
CCI's investigation unit that it will use to "counter any legal presumptions and material impact against" it.The CCI did not respond to
Reuters' request for comment
Heineken declined to comment.The chairman of the CCI, Ashok Kumar Gupta, and other members of the commission are expected to decide on a
penalty over the next few months, or dispute the investigation findings which were submitted in August, the two sources said.The report will
not be made public and its findings have not previously been reported.The three brewers, who according to IWSR Drinks Market Analysis
account for about 85 per cent of beer consumption in the $7 billion India market, together face a potential fine of around $280 million,
sources told Reuters last year.Any company executives found to have fixed prices could also be fined, though AB InBev could escape its share
of the fines as it first reported the issue.In cases such as this the next step would typically be for the companies to argue over
penalties, with the CCI deciding on the extent of the leniency to be shown, said Gautam Shahi, a New Delhi-based antitrust lawyer who is not
involved in the case.After an internal investigation in 2017, AB InBev reported its detection of industry collusion under the CCI's
so-called "leniency programme" that provides a whistleblower-type protection for cartel members.The disclosures came after it discovered the
Indian operations - which it acquired through its purchase of SABMiller Plc - had for years fixed beer prices with Carlsberg and United
Breweries.Carlsberg and United Breweries have also filed leniency applications in the case, Reuters has reported, though it is not clear how
the CCI treated those submissions.Separately, AB InBev is battling a city-wide ban in New Delhi for alleged evasion of state taxes, which
the company denies.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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