CCI probes TASMAC for alleged beer sales dominance abuse

The Competition Commission of India (CCI) has started an investigation into the Tamil Nadu State Marketing Corporation Limited (TASMAC) regarding its beer sales practices. This decision comes after a complaint claimed that TASMAC is favoring certain breweries over others. The CCI ordered the 60-day probe on March 25. The investigation aims to see if TASMAC is abusing its dominant position in the liquor market. The complaint was made by Chakra R Prabakaran, who alleged that TASMAC limits consumer choice by predominantly stocking beers from specific brands. TASMAC operates over 5,000 liquor retail outlets in Tamil Nadu, giving it significant market control. The CCI’s interim findings suggest that there may be validity to these claims, warranting further investigation by its Director General. The CCI's investigation will examine TASMAC's procurement policies and sales data. It will also review agreements with manufacturers. Recently, the Madras High Court has asked the Enforcement Directorate (ED) to hold off on its investigations into TASMAC's operations. The ED previously reported finding serious irregularities, including issues with tender processes and unaccounted cash transactions.