CCI Launches Formal Antitrust Investigation into Spirits Giant Pernod Ricard

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NEW DELHI: The Competition Commission of India (CCI) has ordered a formal investigation into French spirits conglomerate Pernod Ricard following allegations of anti-competitive practices.

The probe focuses on whether the company used its market power to unfairly dominate the Indian liquor sector, home to its popular brands like Chivas Regal and Absolut.

Initial findings suggest Pernod Ricard provided approximately ₹200 crore in corporate guarantees to retailers in 2021. In exchange, these retailers were allegedly required to prioritize the company’s products, ensuring they accounted for at least 35% of total stock.

This strategy reportedly led to a massive surge in market share, growing from 15% to 35%, while aiming for a near-monopoly of 47%. The CCI stated that such ‘vertical arrangements’ potentially stifle competition and limit consumer options, prompting a deeper look into the company's business conduct across India.