CCI Orders Wine Associations to Stop Anti-Competitive Practices in Liquor Trade

The directive was issued under Section 27 of the Competition Act, 2002 after the Commission found violations of Sections 3(3)(a), 3(3)(b) read with Section 3(1) of the Act.

The Competition Commission of India (CCI), through an order dated 11 December 2025, has directed three major wine and liquor trade associations in Maharashtra to cease and desist from engaging in anti-competitive practices. The directive was issued under Section 27 of the Competition Act, 2002 after the Commission found violations of Sections 3(3)(a), 3(3)(b) read with Section 3(1) of the Act.

The associations named in the order are:

• Maharashtra Wine Merchants Association

• Pune District Wine Merchants Association

• Association of Progressive Liquor Vendors

The order was delivered in Case No. 43 of 2019, and is publicly available on the CCI website.

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Allegations: Associations Imposed Uniform Commercial Conditions Across the Liquor Supply Chain

The proceedings stemmed from an Information filed under Section 19(1)(a) of the Act. The Informant alleged that the associations were collectively influencing and prescribing commercial terms to manufacturers, distributors, and retail sellers of alcoholic beverages.

The alleged anti-competitive conditions included:

• Prescribing uniform retail margins

• Controlling new product launch schemes

• Dictating transportation and delivery terms

• Imposing cash discounts and credit period norms

• Levying mandatory launch fees and donations

• Influencing a wide range of commercial terms ordinarily left to individual negotiation

These practices, the Informant argued, had restricted competition across the alcoholic beverages supply chain, distorting prices and limiting commercial freedom.

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CCI’s Findings: Associations Illegally Influenced Pricing, Margins and Market Entry

Based on documentary evidence, circulars, emails, and member communications, the CCI concluded that the associations were actively dictating or influencing key commercial variables that should be determined independently by each enterprise. These included:

• Prices and margins

• Discounts and payment terms

• Transportation charges

• Other trade conditions affecting cost and supply

Additionally, the Commission found that associations had mandated manufacturers to obtain No-Objection Certificates (NOCs) before launching new products in the market—essentially creating an unlawful entry barrier.

Such conduct was held to appreciably restrict competition, violating:

• Section 3(3)(a) – agreements that fix prices or influence sale conditions

• Section 3(3)(b) – agreements that limit or control supply, markets or technical development

• Section 3(1) – overarching prohibition on anti-competitive agreements

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Office-Bearers Also Held Liable Under Section 48

In addition to directing the associations to cease anti-competitive actions, the CCI found several office-bearers personally liable under Section 48 of the Act, which holds individuals responsible when they are involved in, or have knowledge of, the contravention by their associations.

The Commission highlighted that leadership positions within trade associations carry legal responsibility to ensure compliance with competition law.

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Order Highlights: Strengthening Competitive Freedom in the Liquor Sector

The CCI’s order reinforces that trade associations cannot prescribe or coordinate commercial decisions for their members. Each enterprise—manufacturer, distributor or retailer—must independently determine:

• Prices

• Discounts

• Schemes

• Margins

• Market entry terms

The ruling aims to restore market autonomy, reduce collusive practices, and ensure that consumers benefit from genuine competition in the alcoholic beverages market.