Competition
Commission of India (CCI) has imposed a penalty of Rs.55.42 lakhs on Chemists
and Druggists Association, Ferozepur (CDAF) and its office bearers. Penalty has
been imposed on the basis of information filed by M/s Arora Medical Hall,
Ferozepur alleging contravention of the provisions of Competition Act. The
informant had alleged that the CDAF had imposed conditions to take an NOC and
Letter of Credit from the CDAF. Further, CDAF directed its members to stop
purchasing goods from the informant vide their resolution on 26.5.2012 and
directed all the wholesalers to stop dealings with the retailers who continued
to purchase goods from the informant. The informant alleged that such actions
were creating barriers to new entrants in the market but also driving existing
competitors out of the market.
After
a detailed investigation, CCI came to the conclusion that the acts of the CDAF
were anti-competitive and the conduct needs to be penalized to act as a
deterrent in future for any other association/office bearer who engaged in such
type of actions.
The
Commission has imposed the penalty on the basis of 10% of the average
income/receipts on the Association and its office bearers amounting to a total
of Rs.55.42 lakhs. CCI has also directed CDAF and its office bearers to “Cease
and Desist” from indulging in such anti-competitive practices. The Commission
also directed CDAF to file undertakings to this effect within a period of 30
days from the date of receipt of the order.
The Commission directed the opposite parties to deposit the penalty amount within the 60 days of receipt of the order.
Detailed order can be seen at CCI’s website www.cci.gov.in.
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