CCI draws
attention of Associations of Chemists, Druggists, Stockists, Wholesellers and
Manufacturers to the Anti-Competitive practices in the Pharmaceutical Industry
Competition Commission of India(CCI)
have found the following practices of All India level, State level, District
level associations of chemists, druggists, stockists, whole-sellers and manufacturers
as anti-competitive:
1. Issuance of No Objection Certificate or letter of consent
by such associations for opening chemist shop/being appointed
stockists/distributor/whole-seller.
2. Compulsory payment of PIS charges by pharmaceutical
firms/manufacturers to associations for release of new drug/new formulation.
3. Fixation of trade margins at different levels of sale
of drugs/medicines.
4. Issuance of instructions to chemists /druggists /shops /stockists
/ whole-sellers / manufacturers restricting discounts on sale of drugs in
retail or wholesale.
5. Issuance of boycott calls by the associations to their
members against any enterprise for not following the instructions of
associations.
Penalties have been imposed by
CCI on such trade associations of chemists and druggists for violation of
provisions of Competition Act.
CCI had issued cease & desist
order against the associations directing them not to indulge in
anti-competitive practices and the associations have filed undertakings that
they would not indulge in such illegal practices. Non-Compliance of the
orders of CCI involves severe penalties and can lead to prosecution.
All concerned have been informed
through a public notice published in the leading newspapers on 31st
January, 2014 that they can approach the Commission bringing to its notice
violations of the orders passed by the Commission which are available on its
website (www.cci.gov.in).
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