Madhya Pradesh Chemists and Distributors Federation (Mpcdf) v. Madhya Pradesh Chemists and Druggist Association (Mpcda) & Others
Case brief
What is this about?
The Competition Commission of India adjudicated an allegation that chemists' associations and pharmaceutical companies in Madhya Pradesh conspired to restrict competition by mandating No Objection Certificates (NOC) for stockist appointments. The Commission found the practice to be an anti-competitive agreement restricting market entry and directed the parties to cease the practice. Penalties were imposed on the chemists' associations at 10% of their income and on pharmaceutical companies and their respective officials at 1% of income. The Commission held that individual liability is independent and affirmed the confidentiality of financial records despite the penalty requirement.
What did the court decide?
Cessation of NOC mandate; penalties imposed on associations (10% of income), pharmaceutical companies, and officials (1% of income) based on average income/turnover; confidentiality granted to ITR copies.