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CCI finds no violation of competition norms in Maharashtra chemists' association case

Press Trust of India  |  New Delhi 

The has found no evidence of Mumbai-based (RDCA) indulging in anti-competitive practices with respect to charging for from companies.

After taking into consideration the report of its investigation arm Director General (DG) and views from various entities, the regulator has ruled that there is "no cogent evidence on record" to suggest that collection of (PIS) charges by the association was mandatory.

Generally, PIS is in the nature of a charged by chemists and druggists associations for introducing a new product/drug launched by the companies in their bulletins and newsletters.

The also said that implementation of the decision in the present case would be subject to proceedings before the

After the regulator ordered a detailed probe into the matter on August 25, 2015, the RDCA had moved the as it was aggrieved by the decision.

On March 19, 2018, the court said that if any final order is passed by the CCI, it would be subject to the orders in the writ petition.

The watchdog said that the decisive test of whether PIS charges is anti-competitive or not depends on whether it has been collected on mandatory or voluntary basis.

"... there is no cogent evidence on record to suggest that collection of PIS charges by the (RDCA) from companies was mandatory," the said.

Companies, which were directly affected, have come forward during investigation to say that there has been no compulsion to pay such charges, post the CCI's previous orders and directives. The regulator had found such mandatory seeking of charges by various retailers associations to be anti-competitive, as per the 30-page order dated November 8.

Further, the regulator said evidence on record does not suggest that PIS charges were mandatory for introduction of new drugs in

There is no contravention of provisions under Section 3 of the Competition Act and subsequently "no question of liability of the office bearers of the arises in the present case", it added.

RDCA is affiliated to the (MSCDA). The latter is affiliated to All (AIOCD).

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 09 2018. 18:30 IST