The president of the Competition Commission, Kiran Meetarbhan, has proclaimed that the companies Phoenix Beverages Ltd and Stag Beverages Ltd have been issued with huge financial penalties of Rs 20 229 355 and Rs 6 575 377 respectively. The two companies are said to have violated article 41 of the Competition Act, whereby they have come to a common agreement. It is to be noted that both of them are specialised in the manufacture of beers.
The investigation had begun in March. It has been reported that Stag Beverages had unclasped its grip over the competition between the two of them when they agreed that Phoenix Beverages would retreat from the beer market of Madagascar. In addition to the financial penalty, other measures have been devised by the Competition Commission to remediate the situation of monopoly that has been established by the agreement struck between the two companies.
In the communiqué issued by the Competition Commission, it is said that: « Phoenix Beverages Ltd took advantage of the CCM’s Leniency Programme provided for under CCM3 Guidelines on Collusive Agreements whereby enterprises may obtain lenient treatment in exchange of information on cartel activity in which they are involved.
As part of its leniency application, Phoenix Beverages Ltd submitted information to the CCM which led the Executive Director to conclude that there was indeed a collusive agreement between Phoenix Beverages Ltd and Stag Beverages Ltd in breach of section 41 of the Act. »