{"id":180364,"date":"2018-01-08T17:30:24","date_gmt":"2018-01-08T12:00:24","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=180364"},"modified":"2018-01-08T14:13:35","modified_gmt":"2018-01-08T08:43:35","slug":"cci-imposes-penalty-chemists-druggists-association-baroda-federation-gujarat-chemists-druggists-association","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2018\/01\/08\/cci-imposes-penalty-chemists-druggists-association-baroda-federation-gujarat-chemists-druggists-association\/","title":{"rendered":"CCI imposes penalty on Chemists and Druggists Association of Baroda and Federation of Gujarat Chemists and Druggists Association"},"content":{"rendered":"<div class=\"MinistryNameSubhead text-center\" style=\"text-align: justify;\"><strong>Competition Commission of India:<\/strong> The Commission has found the Chemists and Druggists Association of Baroda (\u2018CDAB\u2019) and Federation of Gujarat State Chemists and Druggists Association (\u2018Gujarat Federation\u2019) to be in contravention of the provisions of the Competition Act, 2002 (\u2018Act\u2019).\u00a0One of the stockists based in Vadodara filed an information alleging that despite an earlier order of the Commission in the year 2012, CDAB, through its practices, has continued to limit and control the supply of drugs and medicines in the market by mandating \u2018No Objection Certificate\u2019 (\u2018NOC\u2019\/\u2018LOC\u2019) prior to appointment of stockists and payment of \u2018Product Information Service\u2019 (\u2018PIS\u2019) charges prior to introduction of new products in the market by pharmaceutical companies.<\/div>\n<p style=\"text-align: justify;\">Investigation carried-out by the\u00a0Director General (\u2018DG\u2019)\u00a0revealed involvement of the State Level Association,<em>i.e.<\/em>\u00a0the Gujarat Federation, besides CDAB, in the alleged conduct.\u00a0After detailed enquiry, the Commission has found that CDAB and the Gujarat Federation\u00a0were indulging in the anti-competitive practice of insisting NOC prior to the appointment of new stockists by pharmaceutical companies. Further, the Gujarat Federation was found to be carrying on the practice of making introduction of new products in the market subject to payment of PIS charge and its approval. These practices were held to be limiting and controlling supplies of drugs\/medicines in the market, in contravention of Section 3 (3) (b) read with Section 3 (1) of the Act. Further, the Commission has held\u00a0office bearers of CDAB and Gujarat Federation, namely\u00a0Shri V.T. Shah (President, CDAB), Shri Jashvant Patel (President, Gujarat Federation), to be\u00a0responsible under Section 48 of the Act, for their involvement in the anti-competitive practices.<\/p>\n<p style=\"text-align: justify;\">Accordingly, CDAB, Gujarat Federation\u00a0and their office bearers, have been directed to cease and desist from indulging in the aforesaid anti-competitive practice. Further, the Commission imposed a monetary penalty of Rs. 1,08,588\/- and Rs. 11,11,549\/-, calculated at the rate of 10% of the average income of CDAB and the Gujarat Federation, respectively, under the provisions of Section 27 of the Act. Penalties of Rs. 34,048\/- and Rs. 62,144\/-, calculated at the rate of 10% of their respective average incomes, are also imposed upon Shri V.T. Shah (President, CDAB) and Shri Jashvant Patel (President, Gujarat Federation).<\/p>\n<p style=\"text-align: justify;\">This case is yet another example of how competitive markets and fair-play in the distribution of drugs\/medicines are being compromised by the persisting anti-competitive behaviour of the chemist and druggist associations at the Regional as well as State level. It is indeed a serious matter that despite various orders by the Commission in similar cases and specific directions through a press notice, chemist and druggist associations have not mended their ways and have continued to indulge\u00a0in\u00a0such anti-competitive conduct. Considering the larger public interest involved in the distribution of drugs\/medicines, the Commission deprecates such a conduct and its perpetration in any form by those responsible, be it the Associations, Stockists\/Distributor\/Wholesaler\/Retailer and the Pharmaceutical Companies. Given the widespread and continuing indulgence in the Anti-competitive practices, the Competition Commission of India will be keeping a close watch on the conduct by all such entities in various parts of the country and would not hesitate to take action, wherever deemed necessary. [Reliance Agency v.\u00a0Chemists and Druggists Association of Baroda,\u00a0Case No. 97 of 2013, decided on 4.1.2018]<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>Competition Commission of India: The Commission has found the Chemists and Druggists Association of Baroda (\u2018CDAB\u2019) and Federation of Gujarat State Chemists <\/p>\n","protected":false},"author":91,"featured_media":76441,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[],"class_list":["post-180364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>CCI 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