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

The Commission has imposed a fine of ₹55.59 lakh on Intas and ₹18.59 lakh on Himalaya for breaking the rules. “Penalty was also imposed on certain officials of these companies,” stated the press release by CCI.

The antitrust regulator also imposed penalty of ₹4.18 lakhs on Madhya Pradesh Chemists and Druggist Association (MPCDA) and ₹39,000 on ICA for contravening the Competition Act, 2002.

Action was initiated by CCI after receiving complaints from Madhya Pradesh Chemists and Distributors Federation that associations like MPCDA and ICA had mandated the practice of issuing No Objection Certificates and Letter of Consent, prior to appointment of stockists.

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

The regulator has directed the office of Director General to conduct further investigation.

“An investigation carried out by the DG established contravention on the part of said associations and certain pharmaceutical companies, who were found to be facilitating such anti-competitive practices. DG also identified certain individuals’, officer bearers, officials of the associations and pharmaceutical companies to be liable,” said the release.

The Commission further directed the pharmaceutical companies to bring into place a Competition Compliance Programme and file compliance report with the Commission.