Finance
Exclusive-India Flips Ab InBev From Witness to Target in Antitrust Probe, Triggering Court Fight
Published by Global Banking & Finance Review®
Posted on April 21, 2026
4 min readLast updated: April 21, 2026
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India Targets AB InBev in Major Antitrust Probe Over Telangana Beer Market
Antitrust Investigation and Legal Proceedings
By Aditya Kalra
NEW DELHI, April 21 (Reuters) - India's antitrust agency has made Anheuser-Busch InBev a target of a cartel investigation after the world's leading brewer cooperated for four years as a witness, leading to a court battle in which AB InBev has obtained a temporary injunction, according to two sources and documents.
Since 2022, the Competition Commission of India (CCI) has been investigating 42 alcohol retailers in Telangana, India's largest beer consuming state, for allegedly forming a cartel to exclude AB InBev's rivals, leading to a surge in market share for the Belgium-based maker of beers including Budweiser and Corona.
AB InBev's Changing Status in the Case
As part of the case, AB InBev was raided in 2024, but no other details have been previously made public in line with CCI's rules on its investigation of alleged cartels.
AB InBev's status in the case was changed from a third-party to "party under investigation" in November 2025, which was illegal as "no prior notice, hearing, or reasoned order preceded this drastic alteration," the company said in a court filing that was reviewed by Reuters.
Legal Response and Temporary Injunction
In a brief court hearing on April 16, a judge in southern Karnataka state put the investigation against AB InBev on hold, two sources with direct knowledge of the decision told Reuters.
The court order has not yet been made public, but one of the sources said the court took the decision as it saw merit in AB InBev's concerns.
AB InBev, the world's largest brewer, did not respond to Reuters requests for comment. Nor did the CCI. The sources declined to be named as the case details were confidential.
Implications of the Investigation
Making a company a "party under investigation" from a third-party is a significant change in any case and is done when investigators feel they have discovered some evidence against an entity, according to lawyers familiar with the process.
Impact on Rights and Potential Penalties
"Your rights of defence are compromised. Now the company needs to defend itself," said Avaantika Kakkar, head of competition practice at Indian law firm Cyril Amarchand Mangaldas, which is not involved in the case.
Courts across India have had differing views on whether a third-party can be made an accused without notice, lawyers say. However, if the CCI succeeds in overturning the court block, AB InBev will be exposed to penalties that could be as much as three times its profit or 10% of the company's turnover for each year of wrongdoing.
Revelations from Court Papers
Market Share and Previous Regulatory Actions
COURT PAPERS REVEAL CASE DETAILS
India's beer market is worth $10 billion, according to the Brewers Association of India, which says Heineken alone accounts for roughly half the market, while AB InBev and Carlsberg each account for 19%.
The case about retailers in Telangana is the toughest regulatory move against the sector since Heineken-controlled United Breweries and Carlsberg were fined more than $100 million collectively in 2021 after being found guilty of price collusion, though both brewers repeatedly denied wrongdoing. AB InBev acted as a whistleblower in that case.
Details of the Allegations
AB InBev's court papers on the Telangana case reveal for the first time CCI's initial views on the allegations, though the complainant's name has been withheld by the watchdog.
The CCI found merit in allegations that scores of retailers had entered into arrangements among themselves to stock and sell AB InBev beers, and exclude products from Heineken, United Breweries and Carlsberg.
The regulator also said it had found retailers were eligible to receive a special incentive for promoting products of AB InBev exclusively. United Breweries and Carlsberg did not respond to Reuters requests for comment.
AB InBev's Defense and Cooperation
AB InBev privately told the CCI the case should be dismissed as the agency had failed to provide any evidence to show any communication "between the retailers to boycott non-ABI beers", the court papers showed.
AB InBev continued to cooperate with authorities between 2023 and 2025 and provided sensitive business information, including details of incentives it provided, before realising in November last year it was now itself under investigation, the filing said.
"Such unilateral action is antithetical to the fundamental requirement of fairness," AB InBev said.
(Reporting by Aditya Kalra; Editing by Kate Mayberry)
Frequently Asked Questions about Exclusive-India flips AB InBev from witness to target in antitrust probe, triggering court fight
1Why did India's antitrust agency target AB InBev in the Telangana case?
The Competition Commission of India made AB InBev a party under investigation in a cartel case involving alcohol retailers in Telangana, alleging arrangements that excluded rivals and benefited AB InBev.
2What legal action has AB InBev taken in response to the probe?
AB InBev obtained a temporary court injunction against the investigation, arguing the status change was illegal as there was no prior notice or hearing.
3What are the possible penalties if AB InBev is found guilty?
If found guilty, AB InBev faces potential penalties of up to three times its profit or 10% of turnover for each year of wrongdoing.
4How significant is the Telangana beer market in India?
Telangana is India's largest beer consuming state, making the probe highly significant for major brewers like AB InBev, Heineken, and Carlsberg.
5What role did AB InBev play before becoming a target in the investigation?
AB InBev initially cooperated as a witness and provided authorities with sensitive business information before being named a party under investigation.
