CCI imposes penalty on Chemists and Druggists body

Competition Commission of India (CCI) imposed penalty on the Chemists and Druggists Association of Baroda (CDAB) for abuse of dominant position.

The competition watchdog on Wednesday imposed a monetary penalty of ₹32,724 calculated at the rate of 10 per cent of the average relevant income of CDAB for the relevant period.

In its order the CCI said that it found CDAB imposing the requirement of mandatory No Objection Certificate (NOC) and fixing margins for the wholesalers and retailers that was having adverse impact on competition in the country.

The case against CDAB was first filed with the Monopolies and Restrictive Trade Practices Commission (MRTPC) in 2009 alleging that the CDAB has indulged in restrictive trade practices. The allegations were that the CDAB is limiting and controlling the supply of drugs and medicines in the market by mandating NOC prior to appointment of stockists and payment of ‘Product Information Service’ charges prior to introduction of new products in the market by pharmaceutical companies.

Besides, there were allegations that CDAB was fixing the trade margins for the wholesalers/retailers. Subsequently, the case was transferred to the Commission by MRTPC.