CCI Issues Cease And Desist Order Against Chemists Associations For Indulging In Anti-Competitive Practices

The Competition Commission of India (“CCI”) issued an order on 23.08.2023 against the district and tehsil level chemists associations in Sriganganagar district, Rajasthan (“OP”) which were found to be contrary to the provisions of Section 3 (3) read under Section 3(1) of the Competition Act 2002 (the “Act”).

The case was initiated based on information submitted by Solar Life Sciences Medicare Private Ltd. (“Solar”). It was alleged that the chemists’ associations had engaged in anti-competitive practices by collectively boycotting Solar’s pharmaceutical products. THE operating mode of the OPs, Moreover, it consisted of collectively deciding and suggesting margins and incentive schemes for manufacturers/suppliers of pharmaceutical products. If such margins and incentive schemes were not offered to chemists, Solar’s products were boycotted.

Based on the documented evidence and depositions of the presidents of these associations, the ICC found that the OPs violated the provisions of Section 3(3)(a) and Section 3(3)(b), read by Section 3( 1 ) of the law. The ICC also held the presidents of these associations accountable under Article 48 of the law.

After considering the extenuating circumstances, the ICC decided not to impose any fines. The CCI has mandated the associations through their respective Presidents to ensure compliance with the provisions of the law by their respective members.

A copy of the order in Case No. 20 of 2020 is available on the ICC website at www.cci.gov.in.

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PPG/KMN