E-Malt.com News article: India: India turns scrutiny on AB InBev as antitrust probe shifts course

Anheuser-Busch InBev has been drawn into the centre of an antitrust investigation in India after years of cooperation as a witness. According to documents reviewed by Reuters, India’s Competition Commission of India reclassified the brewer in November 2025 as a “party under investigation”, a move that has triggered a legal challenge, The Drinks Business reported on April 22.

The company has argued in court filings that this shift occurred without prior notice, hearing or formal reasoning, describing the step as contrary to procedural fairness. In a hearing on 16 April, a court in Karnataka agreed to pause the investigation into AB InBev, according to two sources cited by Reuters, with one stating that the judge saw merit in the brewer’s objections.

At the heart of the case lies an inquiry launched in 2022 into 42 alcohol retailers in Telangana, India’s largest beer-consuming state. The regulator is examining allegations that these retailers coordinated to favour AB InBev brands while excluding rivals such as Heineken, United Breweries and Carlsberg.

Court papers reveal that the CCI found merit in claims that certain retailers entered arrangements to stock and promote AB InBev beers, supported by incentives tied to exclusivity. As per the same filings, the complainant’s identity has not been disclosed.

AB InBev has countered that there is no evidence of communication between retailers to boycott competing products, and has maintained that the case lacks substance. The brewer had continued to supply detailed commercial information to the regulator between 2023 and 2025 before learning of its altered status.

The reclassification from third party to investigated entity carries weight. Lawyers indicate that such a shift typically reflects the discovery of evidence that may implicate a company. Avaantika Kakkar, head of competition practice at Cyril Amarchand Mangaldas, said that once designated as an investigated party, a company must actively defend itself, with its rights of defence affected.

Courts in India have differed on whether such a transition can occur without notice. Should the CCI succeed in overturning the current injunction, AB InBev could face penalties of up to three times its profit or 10% of turnover for each year of alleged wrongdoing.

The legal dispute unfolds against a difficult backdrop for India’s beer sector. According to the Brewers Association of India, the market is valued at around US$10 billion, with Heineken holding roughly half and both AB InBev and Carlsberg accounting for about 19% each.

Separate reporting by the drinks business has described mounting cost pressures linked to the conflict in the Middle East. Gas shortages, attributed to disruptions affecting supply routes involving Qatar, have pushed up production costs and curtailed output. Glass bottle prices have risen by about 20%, while packaging costs such as cartons have doubled.

Vinod Giri, director general of the association, told Reuters that brewers are seeking price increases of between 12% and 15%, adding that companies have been advised to approach state authorities individually. India’s regulatory framework requires approval across multiple states for price adjustments, which can delay responses to cost inflation.


22 April, 2026