The Competition Commission of India has instructed three major liquor trade associations in Maharashtra to immediately halt practices that the regulator found to be restricting fair competition across the state’s alcoholic beverages market.
The order, issued on Thursday, follows a detailed investigation into the Maharashtra Wine Merchants’ Association, the Pune District Wine Merchants’ Association and the Association of Progressive Liquor Vendors. According to the regulator, all three bodies were involved in coordinating commercial terms that should have been left to individual businesses to decide.
The inquiry was triggered by information submitted to the commission that described how the associations were collectively prescribing conditions to manufacturers, distributors and retail sellers. The regulator found evidence that these groups were circulating instructions through emails, notices and internal communications that influenced retail margins, launch schemes for new products, transportation and delivery charges, cash discounts, and credit periods. In some cases, the associations were also collecting mandatory launch fees and seeking donations linked to commercial activity.
The commission noted that the most serious concern was the practice of requiring alcoholic beverage manufacturers to obtain a no objection certificate from the associations before launching new products. The CCI held that this requirement functioned as a barrier to entry and discouraged pricing freedom, ultimately limiting consumer choice.
In its order, the regulator concluded that these practices violated Section 3(3)(a) and Section 3(3)(b) of the Competition Act, read with Section 3(1). The findings also held the office bearers of the associations responsible for supporting and enabling the conduct, making them liable under Section 48 of the Act.
The three associations have been directed to cease all such activities with immediate effect. The decision is expected to bring more pricing autonomy, fewer administrative barriers and greater transparency to Maharashtra’s liquor trade.
