Competition Comm fines Kerala's chemists grouping

The CCI today imposed a penalty of nearly Rs 10 lakh on Kerala-based chemists' grouping AKCDA, its two district associations and six office bearers for indulging in unfair business practices.
All Kerala Chemists and Druggists Association (AKCDA), its district associations in Thrissur and Kasargod as well as six office bearers in these districts have to pay the fine.
Following a detailed probe, the regulator found that these entities violated competition norms with respect to mandating the requirement of no objection certificate (NOC) for appointment of stockists.
The Competition Commission of India (CCI) has slapped a fine of Rs 4.79 lakh on AKCDA, Rs 59,434 and Rs 53,889 on Thrissur and Kasargod district associations, respectively.

Besides, six office bearers have been slapped with a total fine of Rs 4.07 lakh.
"The mandatory requirement of NOC as alleged by the informant parties in the present case, has been established by the evidence on record against AKCDA and its district units, namely, Thrissur and Kasargod," the CCI said in a 75-page order.

The regulator also noted that the practice of mandating NOC prior to the appointment of stockists results in limiting and controlling the supply of drugs in the market, which amounts to anti-competitive practice.
"The Commission concludes that AKCDA and its district associations, namely, Thrissur and Kasargod, have contravened the provisions of Section 3... of the Act," CCI said.

Section 3 pertains to anti-competitive agreements.
Four individuals, including Sudeep P M, K A Sundaran and Giri Nair, had filed the complaint. Since the fourth person was granted confidentiality, the individual's identity has not been disclosed.