The competition commission of india imposed a combined penalty of 870 crow rupees when it found united breweries limited, or u b l, and hese bush in ev India limited, and karlsburg india private limited, or c ip l, guilty of forming a beer cartel. These three brewers control 88 % of india's seven billion us Dollar beer market. So why do rivals ever work together? Why would they help each other out? Well the simple answer is that working together has its perks sometimes. But when you decide to go overboard and actively collude with your competitors, then the c c i will show up and mksure you mend your ways. No game theory
Last week, the antitrust regulator Competition Commission of India (CCI) said it has found 6 companies guilty of “price-fixing”. And in today’s episode for 3rd October 2021 we explain why companies engage in such behaviour and how the CCI scuttles this devious scheme.