Competition Commission of India raids AB InBev’s Hyderabad offices over alleged price collusion

India’s antitrust body, the Competition Commission of India (CCI), has raided offices of Anheuser-Busch InBev (AB InBev) and Pernod Ricard, following allegations of price collusion with retailers, according to recent reports by Reuters and other local media.

The surprise raids by the CCI targeted offices in the city of Hyderabad, and those of some retailers in nearby Telangana state, in what could become one of the biggest such industry crackdowns in recent years.

In response to the raid, a statement by AB InBev, which makes Budweiser beer, said, “While we cannot comment on the specifics, we take antitrust compliance very seriously. We are working together in collaboration with the authorities.”

So far, the CCI has not commented on the investigation because its rules require details of raids and investigations into price collusion to be kept confidential until the conclusion of cases. But according to local sources the AB InBev investigation was triggered by an anonymous complaint in July 2022. Moreover, case papers also reveal claims have been made that some beer retailers in Telangana have boycotted all beer brands except those of AB InBev’s, leading to a surge in its market share at the expense of its competitors, according to the reports.

This is not the first time that India’s brewing giants have fallen foul of the authorities. The biggest previous crackdown was in 2018 which saw raids on Carlsberg, AB InBev and Heineken-controlled United Breweries, and a subsequent investigation that ran for years. United Breweries and Carlsberg were eventually fined more than US$100 million collectively in 2021, though both brewers have repeatedly denied any wrongdoing.