CCI penalises Glenmark Pharma, other entities for unfair biz practices

Competition Commission today imposed penalties totalling nearly Rs 47 crore on Glenmark Pharmaceutical, its three officials, two other pharma companies and four Gujarat-based chemists associations for indulging in unfair business practices.

Besides, a carry and forward C&F agent has been penalised.

All the entities have been fined for violating competition norms with regard to mandating no-objection certificates (NOC) from the associations prior to appointing entities as stockists.

In an 86-page order, Competition Commission of India (CCI) also directed the entities to "cease and desist" from indulging in "the practice of mandating NOC, which has been held to be anti-competitive".

Three pharma companies -- Glenmark, Divine Saviour Pvt Ltd and Hetero Healthcare Ltd -- have been fined. Fines have also been imposed on carry and forward agent B M Thakkar & Co, Federation of Gujarat State Chemists & Druggists Association and its three constituent associations as well as their officials.

Glenmark and three of its officials have been directed to pay a total fine of over Rs 45 crore.

The total penalties on these entities as well as their officials amounts to little over Rs 46.59 crore.

"Despite several orders of the Commission proscribing the anti-competitive practices of state and regional chemists and druggists associations in inter-alia mandating NOC for appointment of stockists and stringent penalties imposed upon them, it is found that these associations are continuing to indulge in these practices," the latest order, dated July 12, said.

Further, the regulator said provisions of the Competition Act and spirit of competition seems to be of least priority to these associations, who only believe in disturbing the fair competition through their unfair means.