Pernod Ricard Investigated for Antitrust Violations in India

Indian antitrust investigators conducted a raid on Pernod Ricard's office in December, following accusations of collusion with retailers in Telangana to promote its whisky brand while sidelining rival Radico Khaitan. This crackdown, the largest in the liquor sector in recent years, stemmed from a complaint by Radico, which claimed that Pernod had incentivized retailers to offer special discounts for not stocking Radico's products. Pernod, which is contesting a $250 million tax demand related to undervaluing imports and facing other regulatory challenges, stated it complies with Indian laws and is cooperating with the investigation. The Competition Commission of India (CCI) found evidence suggesting that the anti-competitive practices were facilitated by Pernod through a local marketing agency. Pernod claimed it was unaware of any government document detailing the investigation. The outcome of these legal challenges could significantly impact Pernod's operations in its largest market by volume.