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Information asymmetry causes anti-competitive practices in healthcare sector: CCI chief

Press Trust of India  |  New Delhi 

Many anti-competitive practices in the are due to but may not be violating competition law, the chief has said.

Last month, the (CCI) came out with a policy note titled 'Making Markets Work for Affordable Healthcare' wherein it had flagged various issues.

said that many of the anti-competitive practices observed in the were due to the prevalent in the sector.

These "may not violate the but tends to create conditions that do not permit the process of competition to unfold effectively in the market", he told in an interview.

According to him, the policy note recognises that these issues would require some regulatory interventions from concerned ministries.

There have been persisting concerns about alleged unfair business ways in the and while in certain matters the fair trade regulator has passed orders against entities indulging in such practices.

The CCI, which keeps a tab on unfair practices in the market place, had received about 52 cases involving anti-competitive practices in and

"In deciding these cases, it was observed that a number of issues go beyond competition law," Mital said.

Among other issues, the policy note said that unreasonably high trade margins contributes towards high drug prices and electronic trading of drugs could be an option to spur competitive pricing ways.

The watchdog's policy note had said that one major factor that contributes to high drug prices in is the unreasonably high trade margins.

"The high margins are a form of incentive and an employed by drug companies," an official release had said quoting the policy note.

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

First Published: Sun, November 04 2018. 17:40 IST