CCI slaps Rs 18 cr penalty on W Bengal Chemist Assn for anti-competitive practices
Updated: Mar 14, 2014 01:21:23pm
New Delhi, Mar 14 (KNN) The Competition Commission of India (CCI) has imposed a penalty of Rs 18.38 crore on Bengal Chemist and Druggist Association (BCDA) and its office bearers for anti-competitive practices.
“This has been done vide a common order in Suo moto filed by Chintamoni Ghosh, Director, Directorate of Drugs, West Bengal,” an official release said.
Recently, CCI had asked chemist associations and the drug manufacturing industry to desist from unfair trade practices and that non-compliance of this order would involve severe penalties, even leading to prosecution.
“It is brought to the notice of the public that the Commission had issued cease and desist order against the associations directing them not to indulge in such illegal practices. Non-compliance of the orders of this Commission involves severe penalties and can lead to prosecution,” CCI had said in a notification earlier this year.
“In the reference filed by Ghosh, it was alleged that BCDA is inter alia engaged in issuing anti-competitive circulars directing the retailers not to give any discount to the consumers,” the release said.
The CCI after considering the entire material had directed the Director General (DG) to cause an investigation into the matter and to submit a report.
“The CCI observed that the activities of BCDA inter alia to direct its members to sell drugs only at their MRP is a palpable anti-competitive conduct which cannot be justified on the ground that most of the members of the BCDA, would be ruined if competitive forces are allowed to operate in the market,” it said.
The CCI accordingly concluded that the activities of the BCDA are in conflict with the objects of the competition law as they cause restraint of trade, stifle competition and harm the consumers.
Holding that BCDA and its District and Zonal Committees were engaged in anti-competitive practices of directly or indirectly determining the sale prices of drugs and controlling or limiting the supply of drugs through concerted and restrictive practices, the CCI directed the BCDA and its office bearers and executive committee members to seize and desist from indulging in practices found to be anticompetitive in terms of the provisions of the Act.
After giving due consideration on the issue, the CCI decided to impose a penalty on the BCDA and its those office bearers who were directly responsible for running its affairs and play lead role in decision making at the rate of 10 per cent and on the executive committee members at the rate of 7 per cent, of their respective turnover/income/receipts.
The BCDA has been further directed to file an undertaking within 30 days that the CCI’s directions regarding seize and desist from indulging in anticompetitive practices have been complied with. The amount of penalty imposed was directed to be deposited within 60 of the receipt of the order. A copy of the order is available on the website of CCI (www.cci.gov.in). (KNN/SD)
“This has been done vide a common order in Suo moto filed by Chintamoni Ghosh, Director, Directorate of Drugs, West Bengal,” an official release said.
Recently, CCI had asked chemist associations and the drug manufacturing industry to desist from unfair trade practices and that non-compliance of this order would involve severe penalties, even leading to prosecution.
“It is brought to the notice of the public that the Commission had issued cease and desist order against the associations directing them not to indulge in such illegal practices. Non-compliance of the orders of this Commission involves severe penalties and can lead to prosecution,” CCI had said in a notification earlier this year.
“In the reference filed by Ghosh, it was alleged that BCDA is inter alia engaged in issuing anti-competitive circulars directing the retailers not to give any discount to the consumers,” the release said.
The CCI after considering the entire material had directed the Director General (DG) to cause an investigation into the matter and to submit a report.
“The CCI observed that the activities of BCDA inter alia to direct its members to sell drugs only at their MRP is a palpable anti-competitive conduct which cannot be justified on the ground that most of the members of the BCDA, would be ruined if competitive forces are allowed to operate in the market,” it said.
The CCI accordingly concluded that the activities of the BCDA are in conflict with the objects of the competition law as they cause restraint of trade, stifle competition and harm the consumers.
Holding that BCDA and its District and Zonal Committees were engaged in anti-competitive practices of directly or indirectly determining the sale prices of drugs and controlling or limiting the supply of drugs through concerted and restrictive practices, the CCI directed the BCDA and its office bearers and executive committee members to seize and desist from indulging in practices found to be anticompetitive in terms of the provisions of the Act.
After giving due consideration on the issue, the CCI decided to impose a penalty on the BCDA and its those office bearers who were directly responsible for running its affairs and play lead role in decision making at the rate of 10 per cent and on the executive committee members at the rate of 7 per cent, of their respective turnover/income/receipts.
The BCDA has been further directed to file an undertaking within 30 days that the CCI’s directions regarding seize and desist from indulging in anticompetitive practices have been complied with. The amount of penalty imposed was directed to be deposited within 60 of the receipt of the order. A copy of the order is available on the website of CCI (www.cci.gov.in). (KNN/SD)
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