Competition Commission of India imposes penalty on Chemists and Druggists Association of Baroda

The Competition Commission of India (CCI) has found the Chemists and Druggists Association of Baroda (CDAB) to be in contravention of the provisions of the Competition Act, 2002.A complaint was filed with the Monopolies and Restrictive Trade Practices Commission (MRTPC) in 2009, alleging that the CDAB has indulged in restrictive trade practices.Allegedly, the CDAB, through its practices, was limiting and controlling the supply of drugs and medicines in the market by mandating 'No Objection Certificate' (NOC) prior to appointment of stockists and payment of 'Product Information Service' (PIS) charges prior to the introduction of new products in the market by pharmaceutical companies.Besides, there were allegations that CDAB was fixing the trade margins for the wholesalers and retailers. Subsequently, the case was transferred to the CCI by the MRTPC under the provisions of section 66(6) of the Competition Act. After forming a prima-facie opinion, the CCI directed the office of Director .