CCI imposes Rs 74 cr fine on Himalaya Drug, 3 others for anti-competitive trade practices

The Competition Commission of India has levied a total fine of over Rs 74 crore on pharma firms -- Himalaya Drug Company and Intas Pharmaceuticals -- along with its senior officials as well as two Madhya Pradesh-based drug groupings for indulging in anti-competitive trade practices.

The two drug associations are Madhya Pradesh Chemists and Druggist Association (MPCDA) and Indore Chemists Association (ICA) as per an order by the Competition Commission of India (CCI).

The fair trade regulator held both the drug associations and pharma companies responsible for mandating the requirement of obtaining NOC (No Objection Certificate) prior to the appointment as stockists which resulted in limiting and controlling the supply of drugs and medicines in Madhya Pradesh.

The act of entities contravened Section 3 of the Competition Act which pertains to anti-competitive agreement,the regulator said in an order dated June 3.

Regarding Himalaya Drug and Intas Pharmaceuticals, CCI noted that "despite advising the pharmaceutical companies not to facilitate such practices of the associations and directing the companies to bring to the notice of the Commission any kind of anti-competitive conduct being forced upon them by the trade association(s), the pharmaceutical companies have failed to demonstrate such ability."