The Competition Commission of India (CCI) has fined the Chemists and Druggists Association of Baroda (‘CDAB’) and Federation of Gujarat State Chemists and Druggists Association (‘Gujarat Federation’) for limiting and controlling the supply of drugs and cosmetics which it found in violating the provisions of the Competition Act, 2002.
“Investigation by the CCI found that these associations were indulging in the anti-competitive practice of insisting No Objection Certificate prior to the appointment of new stockists by pharmaceutical companies. The CCI fined these companies under Section 3 (3) (b) and Section 3 (1) of the CCI act.
“CDAB, Gujarat Federation and their office bearers, have been directed to cease and desist from indulging in the aforesaid anti-competitive practice”, CCI said in a statement. The anti completion body has imposed a monetary penalty of Rs. 1,08,588 and Rs. 11,11,549. This is besides the penalties of Rs. 34,048 and Rs. 62,144 on the president of these associations.
“This case is yet another example of how competitive markets and fair-play in the distribution of drugs/medicines are being compromised by the persisting anti-competitive behaviour of the chemist and druggist associations at the Regional as well as State level”, CCI said.