CCI warns against unfair trade practices in pharma business

The Competition Commission of India (CCI) has cautioned that certain activities such as giving instruction to chemists and druggists to restrict discounts on drug sale are unfair in nature.
The fair trade watchdog, in recent times, has pulled up many chemist and druggist groupings, among others, for indulging in anti-competitive business practices.
CCI has listed out various possible unfair practices in the pharma sector in a public notice, according to an official release issued today.
The notice is addressed to general public, chemists, druggists, stockists of medicines, whole-sellers and pharmaceutical manufacturers.
CCI had found various practices anti-competitive with regard to cases concerning practices of all India, state-level, district-level associations of chemists, druggists, stockists, whole-sellers and manufacturers.

"Issuance of instructions to chemists/druggists/shops/ stockists/whole-sellers/manufacturers restricting discounts on sale of drugs in retail or wholesale," is anti-competitive in nature, the release said.

Among others, the regulator has mentioned that issuance of boycott calls by the associations to their members against any enterprise for not following their instructions, and fixation of trade margins at different levels of sale of drugs or medicines, are also against competition norms.
The commission has already issued cease & desist order against the associations directing them not to indulge in anti-competitive practices and they have filed undertakings that they would not indulge in such illegal practices.

"Non-compliance of the order of this commission involves severe penalties and can lead to prosecution," the release said.
Penalties were imposed on trade associations of chemists and druggists who violated competition rules, it added.