6 hours Ago By Reuters
In This Article: By Aditya Kalra NEW DELHI (Reuters) - India's antitrust watchdog has sought additional information and documents from Delhi city authorities as it steps up an investigation into allegations of competition law violations by France's Pernod Ricard, a government document shows. The Competition Commission of India (CCI) has since last year been reviewing accusations that Pernod, maker of brands like Chivas Regal and Absolut vodka, colluded with Delhi city retailers to boost market share, Reuters exclusively reported. The case is among growing challenges for Pernod in India, its largest market by volume sales.
One Pernod India office was raided in December in a separate antitrust case, and the company is also battling a $250-million federal tax demand and another investigation into violations of Delhi city's liquor policy - allegations it denies. In the Delhi antitrust case, Pernod has been accused of asking retailers in 2021 to ensure 35% of their stock consisted of the French company's brands, in return for helping them get loans, thereby hurting competition. In the first signs of increased scrutiny in the matter, the CCI in November asked the Excise Department in New Delhi, which handles all liquor-related matters, to furnish "detailed comments with supporting documents" related to the case against Pernod, the government document stated.
The CCI also asked the Delhi city authorities to provide details about the Delhi city rules of 2021-22, and how distributors and retailers were selected back then. The Delhi Excise department, CCI and Pernod Ricard did not immediately respond, and it's not immediately clear if the information has already been supplied to the watchdog. Pernod has previously told Reuters it was committed to comply with local laws and instructs its teams to do the same.
Two sources with direct knowledge said the CCI request indicates the case is progressing, especially as approaching another government agency shows it is being taken seriously. That said, the CCI can still dismiss the case if it finds no merit in the allegations, or order a full-blown investigation. The antitrust accusations rely mostly on findings by India's financial crime agency which is also looking at Pernod's alleged role in violation of the city's liquor policy that also led to a brief 2022 arrest of a company official.
Pernod denies wrongdoing, but has since late 2022 been prohibited from selling liquor from in the capital city. (Reporting by Aditya Kalra).
