New Delhi (Agency): The Competition Commission of India (CCI) took decisive action against certain district and tehsil level chemists associations in Sriganganagar district, Rajasthan, on August 23, 2023, issuing an order to cease and desist from anti-competitive practices.
The case was initiated based on information provided by Solar Life Sciences Medicare Private Ltd. (Solar). The company alleged that the chemists associations had engaged in anti-competitive practices by collectively boycotting Solar’s pharmaceutical products. The associations’ modus operandi included collectively deciding and suggesting margins and incentive schemes for manufacturers and suppliers of pharmaceutical products. If these margins and incentive schemes were not offered to the chemists, the products of Solar were boycotted.
Upon examination of the evidence and depositions from the Presidents of the associations, the CCI found that the associations were in contravention of Sections 3(3)(a) and 3(3)(b) read with Section 3(1) of the Competition Act, 2002. The Presidents of the associations were also found liable under Section 48 of the Act.
Interestingly, the CCI opted not to impose any monetary penalty on the associations. Instead, it directed the associations, through their respective Presidents, to ensure compliance with the provisions of the Act by their members. The decision serves as a warning to other associations and emphasizes the CCI’s commitment to uphold fair competition and prevent anti-competitive practices.
This case illustrates the importance of adherence to competition laws and highlights the CCI’s role in safeguarding the interests of consumers and businesses alike. By taking action against the chemists associations, the CCI has sent a clear message that collective boycotts and other anti-competitive conduct will not be tolerated, reinforcing the principles of fair competition within the pharmaceutical industry in India.
