Wednesday, August 3, 2016

CCI slaps penalty of Rs 72 crores on Lupin for restricting supply of drugs

Competition Act, 2002: Act of restricting supply of drugs by Lupin, pharmaceutical company, due to non-compliance of condition of furnishing of NOC by ‘Chemists and Druggist association’ was anti-competitive
Facts :
a) Karnataka Chemists & Druggist Association (KCDA) restrained pharmaceutical companies from appointing new stockists in the State of Karnataka without a NOC.
b) Maruti & Co. (Informant) was appointed as a stockist for the Diabetes care division. Lupin, being a Pharmaceutical company, refused to supply drugs to informant. It had directed informant to obtain an NOC from KCDA to get supply of drugs.