CCI warns drugmakers not to indulge in unfair business practices

Fair trade regulator CCI has asked Bengal Chemists and Druggists Association (BCDA), its two district committees, Alkem Laboratories and Macleods Pharmaceuticals to refrain from indulging in anti-competitive business practices.

The district committees are Murshidabad District Committee and Burdwan District Committee.

In a press release, CCI said it has passed an order against the entities for violating provisions of the Competition Act by involving in anti-competitive business practices.

The Competition Commission of India (CCI) found that pharmaceutical companies -- Alkem Laboratories and Macleods Pharmaceuticals-- had an anticompetitive agreement with BCDA.

CCI noted that BCDA used to mandate pharmaceutical companies in some districts of West Bengal to ask their new stockists to obtain a stock availability information (SAI) / no objection certificate from BCDA before supply of drugs can be commended to them and used to collect monetary considerations for issuance of SAI through its district committees.

Also, the promotion cum distributor agents of pharma companies had to obtain product availability information from BCDA after paying money to the association in the form of donations to start marketing drugs of their respective pharma companies in West Bengal.

Since BCDA has taken several steps to stop the practice of requiring NOC/ SAI and Alkem and Macleods have filed the plea before the Commission that they were indulging in such conduct under threat from BCDA, CCI has "decided not to impose any monetary penalty on the erring entities.