Jurisdiction - India
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India – CCI Imposes Fines On Chemists And Druggists Association Goa.

28 December, 2014

 

 

On October 27, CCI imposed a penalty of 10.62 lakhs on the Chemists and Druggists Association
of Goa (‘CDAG’) for disregarding the previous order of CCI in the case of Varca Druggists and
Chemists v. Chemists and Druggists Association of Goa.


The complainant, Xcel Healthcare (‘Xcel’) informed CCI about the anti-competitive practices
that CDAG indulged in. It was alleged that CDAG continued to restrain pharmaceutical companies
such as M/s Glenmark Pharmaceuticals Limited (‘Glenmark’) and M/s Wockhardt Limited
(‘Wockhardt’) from doing business with Xcel.


DG found that CDAG was suspending supply of products to Xcel which amounted to an
agreement between CDAG, Glenmark and Wockhardt in contravention of Section 3(4)(d) of the
Competition Act. CCI observed that CDAG was controlling the supply chain through which drugs
and medicines are made available in the market through the practice of requirement of ‘no objection certificates’ prior to appointment of stockists by pharmaceutical companies which had resulted in a limitation or restriction of the supply of goods in the market.


CCI however did not find that Glenmark or Wockhardt had contravened any provisions of the
Act and absolved both enterprises.

 

AZB

 

For further information, please contact:

 

Zia Mody, AZB & Partners
zia.mody@azbpartners.com

 

Abhijit Joshi, AZB & Partners 
abhijit.joshi@azbpartners.com

Shuva Mandal, AZB & Partners 
shuva.mandal@azbpartners.com

 

Samir Gandhi, AZB & Partners
samir.gandhi@azbpartners.com

Percy Billimoria, AZB & Partners 
percy.billimoria@azbpartners.com

 

Aditya Bhat, AZB & Partners 
aditya.bhat@azbpartners.com

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