CCI Orders Probe into Pernod Ricard IMFL Practices

India's Competition Commission (CCI) has ordered a detailed investigation into French spirits company Pernod Ricard and seven other entities over allegations of anti-competitive practices in the Indian-made foreign liquor (IMFL) market in New Delhi. The probe, outlined in a 26-page order dated May 5, targets restrictive arrangements that regulators say distorted retail demand to favor Pernod Ricard's brands.

The entities under scrutiny include Indo Spirits, Pathway HR Solutions, Universal Distributors, Khao Gali, Bubbly Beverages, Shiv Associates, and Organomix Ecosystems. The CCI found prima facie evidence that Pernod Ricard's conduct with retailers and wholesalers violated Section 3 of the Competition Act, which prohibits anti-competitive agreements. Officials noted that such exclusive dealing falls under prohibited vertical arrangements.

The complaint, filed in 2024 by an individual named Mohit from Jaipur, alleged that in 2021 Pernod Ricard offered corporate guarantees worth around 200 crore rupees (about $24 million) to help Delhi retailers secure loans and licenses. In return, retailers reportedly agreed to stock at least 35 percent of Pernod Ricard brands, including...