CCI Rejects Complaint Against Nestle Over Alleged Unethical Maggi Sauce Production At Goa Plant

The Competition Commission of India (CCI) on Tuesday rejected a complaint of abuse of dominance alleging unethical production practices in the manufacturing of Maggi Sauce by Nestlé India Ltd. at its Goa factory.

A coram comprising Chairperson Ravneet Kaur and Members Anil Agrawal, Sweta Kakkad, and Deepak Anurag observed that the issues raised “primarily relates to the violation of food, health and safety standards and in itself does not fall within the ambit of the Act, in absence of any other information which necessitates further examination into the allegations..”

The complaint was filed by one Sarvesh Kolumbkar under Section 19(1)(a) of the Competition Act, targeting Nestlé's Bicholim Maulinguem factory in North Goa, which manufactures Maggi Sauce.

The Informant alleged that Nestlé was using dirty water extraction pump from an under-construction site for the production of Maggi Sauce and putting false labels on the Maggi Sauce bottles thereby misleading consumers and violating food safety norms.

He contended that such conduct amounted to an abuse of dominant position under Section 4 of the Act and further criticized the lack of enforcement by the Goa food safety regulator.

Among other reliefs, he sought an investigation, a bar on certification bodies from giving further certifications, and even personal incentivisation for pursuing what he termed a “Maggi Sauce scam” over 15 years.

After reviewing the submission, the Commission concluded that the allegations did not raise any competition law concerns.

In its final order passed under Section 26(2), the CCI stated: “Having perused the allegations and the relief sought by the Informant, the Commission is of the view that there is no competition issue arising out of the present case and thus, directs that the matter be closed forthwith under the provisions of Section 26(2) of the Act.”

The Commission also rejected the Informant's plea for interim relief under Section 33, clarifying that “no case for grant for interim reliefs as sought under Section 33 of the Act, arises and the same is also rejected.”

Click Here To Read/Download Order