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India antitrust body fines United Breweries, Carlsberg in price fixing case By Reuters

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© Reuters. FILEPHOTO: Carlsberg beer containers are seen in a Mumbai pub on October 20, 2018. Picture taken October 20, 2018. REUTERS/Danish Siddiqui/File Photo

By Aditya Kalra and Abhirup Roy

NEW DELHI (Reuters) -India’s antitrust watchdog on Friday imposed a penalty of $102 million on Heineken-controlled beer giant United Breweries and $16 million on the local unit of Denmark’s Carlsberg (OTC:) in a case related to cartelisation of beer prices in the country.

After a lengthy investigation, which saw the Competition Commission of India raid the offices of the brewery’s in 2018, the order follows. After rival Anheuser Busch Inc. claimed it found an Indian industry cartel after buying SABMiller Plc, the Watchdog was forced to raid its offices.

Reuters published a comprehensive CCI investigation last year. It revealed that several companies had strategized in order to seek price increases in different states. The cartel was forged by the CCI investigation unit, which it claimed gave them greater bargaining power with the state authorities.

After the amount was reduced by the companies cooperating with the investigators, Friday’s final CCI order announced that the CCI would penalize United Breweries for 7.5 billion and Carlsberg for 1.2 billion respectively.

The order also stated that AB InBev received a 100 percent exemption from the penalties because it alerted CCI to the cartel.

According to the 231-page CCI order, the CCI directs all parties “to cease and desist from future indulging in these activities,” which included penalties for several executives of companies it claimed were involved in price fixing.

Carlsberg said in a statement that it is reviewing the CCI Order. United Breweries, Heineken and AB InBev didn’t immediately reply.

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