India Targets AB InBev in Antitrust Probe, Leading to Court Battle

• AB InBev cooperated as a witness for four years (2022-2025) and shared sensitive business information before being reclassified as an accused party in November 2025 without prior notice or hearing
• The CCI alleges retailers formed a cartel to exclusively stock AB InBev products and receive special incentives, excluding rivals Heineken (50% market share), Carlsberg (19%), and United Breweries from India's $10 billion beer market
• This is India's toughest beer sector enforcement since 2021 when Heineken and Carlsberg were collectively fined over $100 million for price collusion, a case where AB InBev was a witness

India Targets AB InBev in Antitrust Probe, Leading to Court Battle

India's Competition Commission (CCI) has escalated its investigation into Anheuser-Busch InBev, changing the world's largest brewer from a witness to a "party under investigation" in a cartel case, prompting AB InBev to secure a temporary injunction in Karnataka state court on April 16.

Key Details:

• The CCI has been investigating 42 alcohol retailers in Telangana, India's largest beer-consuming state, since 2022
• Retailers allegedly formed a cartel to exclusively stock AB InBev products and exclude competitors including Heineken, United Breweries, and Carlsberg
• AB InBev's status changed from third-party witness to accused party in November 2025 without prior notice or hearing
• The company cooperated for four years (2022-2025), providing sensitive business information before learning of its new status

Market Context:

• India's beer market is valued at $10 billion
• Market share: Heineken controls ~50%, AB InBev and Carlsberg each hold 19%
• This represents the sector's toughest regulatory challenge since 2021, when Heineken-controlled United Breweries and Carlsberg were fined over $100 million collectively for price collusion

Financial Implications:

If the CCI prevails in overturning the court injunction, AB InBev faces potential penalties of up to three times its profit or 10% of annual turnover for each year of alleged wrongdoing.

Company Position:

AB InBev argues the status change violated procedural fairness and claims the CCI failed to provide evidence of communication between retailers to boycott non-AB InBev beers. The court found merit in the brewer's procedural concerns, halting the investigation temporarily.