CCI to probe five pharma firms

Complaint has been filed against the five entities for 'engaging in anti-competition practices' in granting stockist licence for medicines in Himachal Pradesh

The Competition Commission of India (CCI) has directed its Director General (Investigations) to initiate a probe against five entities, including pharma major Cipla, on charges of anti-competitive practices.

The five entities include three pharmaceutical companies — drug major Cipla, FDC and Macleods Pharmaceuticals — as well as the Himachal Pradesh Society of Chemists & Druggist Alliance and its president Sanjeev Pandit.

The move has been triggered by a complaint from Rohit Medical store, alleging anti-competitive practices by the five entities in granting stockist licence for medicines in Himachal Pradesh.

“After giving our thoughtful consideration on the matter, the Commission is of the opinion that there exists a prima facie case to direct the Director General to carry out an investigation into the matter,” the competition watchdog said in a recent order.

After examining the complaint, the regulator observed that the Himachal Pradesh Society of Chemist & Druggist Alliance appears to be controlling and regulating the appointment of stockist-ship of each and every pharmaceutical company in the state. “The evidence placed on record by the informant shows that no one can be appointed as the stockist of any pharmaceutical company in the state of Himachal Pradesh without the No Objection Certificate (NOC) of Opposite Party No. 5 (Himachal Pradesh Society of Chemist & Druggist Alliance) association,” the CCI order said.

It further said that from examination of facts and circumstances, it appears that the conduct of the association in making it compulsory for the complainant to obtain a NOC before appointment as stockist of the three pharma companies, is in violation of the Competition Act.

The complaint alleged that it was not being granted stockist-ship of Macleods Pharmaceutical, FDC and Cipla due to the condition imposed to obtain a NOC from the chemists association.