The Indian Competition Authority finds that pharmaceutical companies and their trade association infringe competition law so orders them to organise competition awareness programmes (Madhya Pradesh Chemists and Distributors Federation / Madhya Pradesh Chemists and Druggist Association)

Indian competition authority finds that pharmaceutical companies and their trade association infringe competition law* Background On 3rd June 2019, CCI delivered yet another order, wherein it held the Madhya Pradesh Chemists & Druggists Association along with other district-level Associations and Pharma Companies to be in contravention of the Competition Act. [1] According to the commission, the practice of demanding ‘No Objection Certificates’ (NOCs) or ‘Letters of Consent’ (LOCs) by the Associations from the Pharma Companies for the appointment of Stockist was a clear violation of Section 3(3)(b) read with Section 3(1) of the Act. [2] This is not the first time that the Competition Watchdog of the country has penalised Chemists & Druggists Associations (hereinafter “CDAs”).

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  • National Law University (Punjab)

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Shaurya Aron, The Indian Competition Authority finds that pharmaceutical companies and their trade association infringe competition law so orders them to organise competition awareness programmes (Madhya Pradesh Chemists and Distributors Federation / Madhya Pradesh Chemists and Druggist Association), 3 June 2019, e-Competitions Bulletin June 2019, Art. N° 91443

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