CCI imposes penalty on Chemists and Druggists Association and Pharmaceutical Companies

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  1. The Competition Commission of India(CCI) has imposed penalty amounting to Rs 74 crore on four chemists and pharmaceutical companies after they were found violating the provisions of the Competition Act,2002.
  2. The penalty was imposed after CCI had found the drug associations responsible for mandating the requirement of obtaining NOC(No Objection Certificate) prior to the appointment as stockists.
  3. This resulted in stifling competition in the market by limiting access of consumers to various pharmaceutical products and controlling the supply of drugs in the market.
  4. Competition Commission of India is a statutory body of the Government of India established in 2003.It is responsible for enforcing Competition Act,2002 throughout India and to prevent activities that have an appreciable adverse effect on competition in India.
  5. The act prohibits (a)anti-competitive agreements (b)abuse of dominant position by enterprises and (c)regulates combinations (acquisition, acquiring of control and mergers and acquisitions) which causes or likely to cause an appreciable adverse effect on competition within India.

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