CCI Orders Liquor Trade Bodies

New Delhi, Dec 11 (PTI) Fair trade regulator CCI has directed three liquor trade associations in Maharashtra to cease and desist from anti-competitive conduct after finding them in violation of competition rules.

In an order passed on Thursday, the Competition Commission of India (CCI) has "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 found to be in violation of Sections 3(3)(a) and 3(3)(b), read with Section 3(1), of the Act".

The proceedings stemmed from information... alleging that these associations collectively prescribed conditions on manufacturers, distributors and sellers of alcoholic beverages.

These included retail margins, new product launch schemes, transportation and delivery terms, cash discounts, credit periods, mandatory launch fees, donations and other commercial terms, the CCI said in a release.

The CCI observed that these associations had been issuing circulars, emails and other communications to their members prescribing or influencing pricing, margins, discounts, payment terms, transportation charges and other commercial terms that ought to be independently determined by each enterprise.

The commission also held that the associations were imposing mandatory requirements on alcoholic beverages manufacturers to obtain no-objection certificates (NOCs) prior to launch new products which amounts to violation of the Competition Act.

Further, the regulator found the office-bearers of these associations liable under Section 48 for their role in facilitating the anti-competitive conduct.