Citing restrictive trade practices in Gujarat, CCI penalizes the Chemist Association in state

The Competition Commission of India has imposed a heavy penalty calculated at 10 percent of periodic income, on the Chemists and Druggists Association of Baroda (CDAB) following the allegation filed with the Monopolies and Restrictive Trade Practices Commission (MRTPC). The allegation read that the association had indulged in restrictive trade practices.

“Through its practices, CDAB is limiting and controlling the supply of drugs and medicines in the market by mandating ‘No Objection Certificate’ prior to appointment of stockists.”, the compliant letter added. The association also made early payments prior to introduction of new products in the market by pharmaceutical companies, fixing the trade margins for the wholesalers and retailers.

After the case got transferred to the Commission, it directed the office of Director General to conduct investigation into the matter who established contravention on part of association. Pursuant to this, CDAB filed an appeal remanding the matter back to the Commission for fresh adjudication.

This fresh consideration proved the association guilty of the allegations and directed to cease and desist from indulging in the aforesaid anti-competitive practice, imposing heavy penalty under the Act.

Competition Commission of India (CCI), which has been established by the Central Government aims to establish a robust competitive environment through proactive engagement with all stakeholders, including consumers, industry, government and international jurisdictions.

It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India.

The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.


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