This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
News
Pernod Ricard faces fresh antitrust allegations in Telangana
Pernod Ricard is facing allegations of antitrust activities in a second Indian state, this time Telangana.
This follows an on-going investigation in the Delhi region where the authorities have withheld renewing the French giant’s trading licence until a court case is resolved.
Reuters reports that investigators from the Competition Commission of India (CCI) have found that Pernod colluded with local retailers to promote its whiskies to the detriment of a local rival Radico Khaitan.
That followed a raid on Pernod Ricard’s Telangana office in December.
Neither the authorities nor Pernod Ricard has confirmed that a raid took place but the French group has reiterated its repeated strong denials of any corporate wrongdoing in India, its largest market by volume sales.
The company said it complies with all Indian laws and was not aware of any government document detailing the Telangana antitrust investigation.
“We are confident that we will demonstrate our good faith and compliance through the ongoing investigative process,” it told Reuters.
The allegations are the latest to beset Pernod Ricard in India.
Not only is it prevented from trading in the capital while a similar antitrust case moves slowly through the legal process, but it is also challenging a US$250 million excise tax demand for allegedly undervaluing imports.
In its complaint to the CCI Radico said there had been an undated and unsigned business agreement that promised some retailers “special discounts” if they did not sell Radico’s brand.
Reuters says that it has seen a document in which investigators allege the anti-competitive agreement was “facilitated and coordinated” by Pernod Ricard India
If the case against Pernod Ricard were to be proved its Indian subsidiary could be liable to a penalty amounting to up to three times its profit for each year during which the collusion took place, or 10% of its turnover for each of those years, whichever is higher.
Related news
Can Chinese yellow wine make a comeback?
Emma Watson’s gin label to expand after £4.95 million investment