The Indian Competition Authority finds an abuse of dominance in the market for wholesale procurement of branded alcoholic beverages within the State of Uttarakhand (International Spirits and Wines Association of India / Uttarakhand Agricultural Produce Marketing Board)
KEY POINTS
Cutting off supply/distribution of particular brands, thereby allowing market access to only a dominant entity leads to abuse of its dominant position by such entity. An effective push to competition happens when the efficiency of slower-moving products is enhanced such that a demand is created for them, not vice versa. BRIEF FACTS
An information was filed by International Spirits and Wines Association of India (“Informant”) alleging a contravention of Section 4 of the Act by the Uttarakhand Agricultural Produce Marketing Board (“OP-1”), Garhwal Mandal Vikas Nigam Ltd. (“OP-2”), and Kumaun Mandal Vikas Nigam Ltd. (“OP-3”) (OP-1, OP-2, and OP-3 are collectively referred to as the “OPs”).
OP-1 is a body corporate established under the Uttarakhand Agriculture Produce
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