Chakra R Prabakaran Vs Tamil Nadu State Marketing Corporation Limited (TASMAC) (Competition Commission of India)
The Competition Commission of India (CCI) has ordered an investigation into allegations that Tamil Nadu State Marketing Corporation Limited (TASMAC) is abusing its dominant position by limiting market access for certain beer brands in Tamil Nadu. The informant, Chakra R Prabakaran, alleged that TASMAC, which holds a monopoly over liquor sales in the state, favors specific beer brands, particularly those from SNJ Breweries and Kals Breweries, thereby hindering competition. The informant cited a white paper and news articles as evidence, claiming that only a limited selection of brands are available at TASMAC outlets, despite a wider variety being available in the market.
The CCI, after reviewing the information, found that TASMAC qualifies as an enterprise under the Competition Act and that the relevant market is the “procurement, marketing, distribution and sale of beer in the state of Tamil Nadu.” Given TASMAC’s monopolistic position, the CCI determined it holds a dominant position in this market. Analysis of TASMAC’s procurement data revealed that a few brands, notably those from SNJ and Kals Breweries, hold a significantly larger market share, while well-known brands have limited presence. The CCI also noted that TASMAC’s procurement formula, based on past sales, may perpetuate the existing dominance of certain brands. The CCI directed the Director General (DG) to conduct an investigation into the alleged contravention of Section 4(2)(c) of the Competition Act, which prohibits abuse of dominant position by limiting market access. The investigation will focus on whether TASMAC’s practices unfairly restrict the availability of other beer brands, impacting competition and consumer choice. The DG is required to submit an investigation report within 60 days.
