Spirit of competition? CCI cracks down on TASMAC's monopoly mix
The Competition Commission of India (CCI) has initiated an investigation into Tamil Nadu State Marketing Corporation Limited (TASMAC), the state-run liquor distribution agency, following allegations of anti-competitive practices, according to media reports.
The probe stems from a complaint filed by a private individual, Chakra R Prabakaran, who accused TASMAC of unfairly favoring specific breweries and limiting consumer choice, media sources indicate.The CCI, in an order issued on March 25th, reportedly found prima facie evidence suggesting that TASMAC may be abusing its dominant position in the market, as reported by various news outlets.
According to these reports, the CCI's order highlights that TASMAC appears to be restricting market access for certain beer brands, potentially violating the Competition Act, 2002.Prabakaran's complaint, as detailed in media reports, alleges that TASMAC disproportionately favors brands like SNJ 10000 and British Empire from SNJ Breweries and Kals Breweries, while neglecting other brands within its distribution network.This alleged practice, as reported, restricts consumer choice and creates an unfair market advantage for select breweries.
TASMAC, which holds a monopoly over liquor retail in Tamil Nadu through a network of over 5,000 outlets, is now under scrutiny, according to the news reports.The CCI has reportedly directed its Director General to conduct a thorough investigation into the matter within 60 days, as per media sources. The investigation will focus on TASMAC's procurement policies, brand-wise sales data, manufacturer agreements, and other relevant factors to determine if the company has indeed abused its dominant position, news outlets have stated.
This development comes shortly after the Madras High Court intervened in a separate investigation by the Enforcement Directorate (ED) against TASMAC, as reported by various media sources.The ED had conducted searches at TASMAC's headquarters in Chennai, alleging irregularities in tender processes and unaccounted cash transactions worth ₹1,000 crore. The High Court has directed the ED to provide details of its findings to the court, according to the reports.
The CCI's investigation, as reported by media outlets, will further scrutinize the operations of TASMAC and shed light on the extent of competition in the state's liquor market.
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