{"id":28881,"date":"2015-12-07T19:57:35","date_gmt":"2015-12-07T14:27:35","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=28881"},"modified":"2015-12-07T19:57:35","modified_gmt":"2015-12-07T14:27:35","slug":"penalty-of-rs-7463-10-lakh-imposed-on-alkem-laboratories-for-anti-competitive-practices","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2015\/12\/07\/penalty-of-rs-7463-10-lakh-imposed-on-alkem-laboratories-for-anti-competitive-practices\/","title":{"rendered":"Penalty of Rs. 7463.10 Lakh Imposed on Alkem Laboratories for Anti-Competitive Practices"},"content":{"rendered":"

Competition Commission of India (CCI): <\/strong>Pharma enterprise Alkem Laboratories Ltd is found guilty for causing potential consumer harm due to its anti-competitive conducts and for lessening of competition in healthcare sector in Kerala. The competition regulator in its detailed order found that Alkem was following anti-competitive dektats of All Kerala Chemists and Druggists Association (AKCDA) i.e. mandatory NOC from the AKCDA before appointing anyone as stockist or distributor of drugs. It must be noted that the Competition Commission in serious of orders has declared practice of mandatory NOC from trade associations as anti-competitive practice causing appreciable adverse effect on competition as it contravenes section 3(3)(b) read with section 3(1) of the Competition Act, 2002.<\/p>\n

Alkem had refused to supply its drugs to the informant and appoint him as its stockist in absence of NOC from the AKCDA.<\/p>\n

CCI observed that the AKCDA is an association of enterprises not itself engaged in the supply and distribution of drugs and medicines in the market and Alkem\u00a0 is the manufacturer of drugs and medicines, therefore any agreement [following the anti-competitive guidelines of AKCDA by Alkem] being not between entities engaged in identical or similar trade of goods or provision of services, as envisaged under section 3(3) of the Competition Act, does not fall within the ambit of the said sub-section. Further, such an agreement between them cannot also be considered to be an agreement between entities at different stages or levels of the production chain in different markets in terms of the provisions of section 3(4) of the Act.<\/p>\n

However, following its ruling in Dr. L. H. Hiranandani Case<\/em>, [2014] CCI 37 the CCI opined that an agreement, even if it is not falling under section 3(3) or 3(4) of the Act, is amenable to its jurisdiction under section 3(1) if the same has an appreciable adverse effect on competition (AAEC). \u00a0Thus, CCI construed instructions to Alkem and its agreement to such instructions as an agreement amenable under section 3(1) of the Act and found them to causing AAEC in healthcare sector.<\/p>\n

Considering the mitigating factor, i.e. appointment of informant as stockist after information is filed, the CCI imposed penalty on Alkem @ 3% of average turnover in last three years. AKCDA is also penalized for prescribing NOC requirements.\u00a0[In Re P. K. Krishnan and Alkem Laboratories Limited,<\/em>\u00a0decided on 01-12-2015]<\/p>\n","protected":false},"excerpt":{"rendered":"

Competition Commission of India (CCI): Pharma enterprise Alkem Laboratories Ltd is found guilty for causing potential consumer harm due to its anti-competitive <\/p>\n","protected":false},"author":3,"featured_media":76441,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[],"class_list":["post-28881","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies"],"yoast_head":"\nPenalty of Rs. 7463.10 Lakh Imposed on Alkem Laboratories for Anti-Competitive Practices | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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of CCI imposing penalty upon Alkem Laboratories, set aside","author":"Sucheta","date":"May 21, 2016","format":false,"excerpt":"Competition Appellate Tribunal (COMPAT):\u00a0While rendering relief to Alkem Laboratories, its two officials, All Kerala Chemists and Druggists Association (AKCDA) and one of its officials, who were fined by CCI in a case alleging anti-competitive practices, COMPAT set aside the said judgment of CCI. The impugned judgment of CCI was passed\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/05\/competition_appelate_tribunal.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":166954,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/11\/02\/cci-finds-kerala-chemist-druggist-association-guilty-anti-competitive-conduct\/","url_meta":{"origin":28881,"position":1},"title":"CCI finds All Kerala Chemist and Druggist Association guilty of anti-competitive conduct","author":"Saba","date":"November 2, 2017","format":false,"excerpt":"Competition Commission of India (CCI): The Competition Commission of India has found the All Kerala Chemist and Druggist Association and its District Units at Thrissur and Kasargod to be in contravention of the provisions of the Competition Act, 2002. Four stockists (wholesalers) in the State of Kerala had alleged that\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":215798,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/06\/15\/cci-companies-not-to-indulge-in-mandating-clearance-noc-loc-that-are-anti-competitive-as-per-s-3-of-competition-act\/","url_meta":{"origin":28881,"position":2},"title":"CCI | Companies not to indulge in mandating clearance\/NOC\/LOC that are anti-competitive as per S. 3 of Competition Act","author":"Bhumika Indulia","date":"June 15, 2019","format":false,"excerpt":"Competition Commission of India (CCI): Ashok Kumar Gupta (Chairperson) and U.C. Nahta and Sangeeta Verma (Members) heard the information filed by MPCDF under Section 19(1)(a) of the Competition Act, 2002 and disposed of the same. The Informant herein, was involved in pharmaceutical trade whereas, Opposite Party 1 (OP-1), was a\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":180364,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/01\/08\/cci-imposes-penalty-chemists-druggists-association-baroda-federation-gujarat-chemists-druggists-association\/","url_meta":{"origin":28881,"position":3},"title":"CCI imposes penalty on Chemists and Druggists Association of Baroda and Federation of Gujarat Chemists and Druggists Association","author":"Saba","date":"January 8, 2018","format":false,"excerpt":"Competition Commission of India: 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\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":154924,"url":"https:\/\/www.scconline.com\/blog\/post\/2017\/09\/07\/for-applying-s-3-of-competition-act-against-an-alleged-anti-competitive-practice-a-prima-facie-case-needs-to-be-established-first\/","url_meta":{"origin":28881,"position":4},"title":"For applying S. 3 of Competition Act against an alleged anti-competitive practice, a prima facie case needs to be established first","author":"Saba","date":"September 7, 2017","format":false,"excerpt":"Competition Commission of India: The CCI recently passed an order under Sec. 26(2) of the Competition Act wherein the informant had filed information against several banks under Section 19(1)(a) of the above-mentioned Act alleging cartelisation between them to limit or control the safe deposit lockers services offered by them. The\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/10\/Competition-Commission.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":369830,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/12\/15\/cci-directs-maharashtra-liquor-trade-associations\/","url_meta":{"origin":28881,"position":5},"title":"CCI Directs Maharashtra Liquor Associations to Halt Anti-Competitive Practices","author":"Shubhi","date":"December 15, 2025","format":false,"excerpt":"CCI issues a cease and desist order against anti-competitive trade practices against Maharashtra Liquor Associations and holds their office-bearers accountable for violating the rules of Competition Act.","rel":"","context":"In "Legislation Updates"","block_context":{"text":"Legislation Updates","link":"https:\/\/www.scconline.com\/blog\/post\/category\/legislationupdates\/"},"img":{"alt_text":"Maharashtra liquor trade associations","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Maharashtra-liquor-trade-associations.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Maharashtra-liquor-trade-associations.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Maharashtra-liquor-trade-associations.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/12\/Maharashtra-liquor-trade-associations.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/28881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=28881"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/28881\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/76441"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=28881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=28881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=28881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}