CCI Orders to Investigate TN State Marketing Corp to Accusate Dominance Abuse

New Delhi, March 26 (PTI) Fair Trade Regulatory CCI has ordered an investigation into state-owned liquor retailer Tamil Nadu State Marketing Company Ltd (TASMAC) to accuse it of limiting competition in the state beer market by favoring the selection of brands.

TASMAC is a wholly owned company of the Tamil Nadu government registered under the Company Act.

In the order adopted on Tuesday, the Competition Commission of India (CCI) directed the General (DG) to complete and submit an investigation report within 60 days.

The order comes after a person filed a complaint, claiming that TASMAC has been buying and selling several beer brands while limiting access to other brands in the market and preventing business competition.

The complainant believes that this practice violates Article 4 of the Competition Act of 2002, which prohibits the abuse of dominance.

According to the complainant, Tasmac owns exclusive rights to sell alcoholic beverages in Tamil Nadu, and has allegedly formed a link with a specific brewery that restricts consumer choices and limits consumer choices and hinders fair competition.

The match watchdog pointed out that Tasmac has a monopoly in the sale of alcohol in Tamil Nadu and has been able to be a business under the Competition Act since its economic activity.

However, Tasmac said in his defense that its procurement process is automated and based on a weighted average sales calculation method.

Taking into account past sales and current stock levels, beer manufacturers’ orders are generated through software. The company believes that sales of a specific brand depend on consumer preferences and the manufacturer’s ability to meet demand.

“The committee is the ostensibly view that Tasmac appears to abuse its dominance by restricting access to certain brands of beers in Tamil Nadu, in violation of Section 4(2)(c) of the bill.

“…there appears to be substantial and similar investigations of the case by the Director General (DG) in the allegations set out by the whistleblower (personal). The Committee therefore directs DG to investigate the matter under section 26(1) of the Act.”

The CCI also made it clear that there is nothing in this order “involving the final expression of opinion in the case, and DG should investigate without any way swinging through the observations here”.

Earlier this month, the Enforcement Bureau conducted a search at several locations in Tamil Nadu as part of a money laundering investigation related to Tasmac’s alleged violations, including the role of its alleged minister, Senthil Balaji.

Power Minister Balaji is also in charge of Tasmac.