CCI imposes ₹74-cr fine on Intas Pharma, Himalaya Drug Company

New Delhi. The Competition Commission of India (CCI) has come down hard upon Intas Pharmaceutical Ltd and Himalaya Drug Company for anticompetitive trade practices  in cahoots with two chemist associations of Madhya Pradesh.

The CCI has imposed a fine of ₹55.59 crore on Intas and ₹18.59 crore on Himalaya. “A penalty was also imposed on certain officials of these companies,” a statement by CCI stated.

The antitrust regulator also imposed a penalty of ₹4.18 lakh on the Madhya Pradesh Chemists and Druggist Association (MPCDA) and ₹39,000 on the Indore Chemists’ Association (ICA) for contravening the provisions of the Competition Act, 2002. Action was initiated by the CCI after receiving complaints from the Madhya Pradesh Chemists and Distributors Federation that associations such as the MPCDA and ICA had mandated the practice of issuing No Objection Certificates and Letter of Consent, prior to the appointment of stockists.

“These practices were stifling competition in the market by limiting the access of consumers to various pharmaceutical products and controlling the supply of drugs in the market,” said the CCI release.

The CCI further directed the pharmaceutical companies to put into place a Competition Compliance Programme and file a compliance report with itself.

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