Competition Commission of India

In Re P. K. Krishnan and M/s Alkem Laboratories and All Kerala Chmists and Druggists Association

01.12.2015

MRTP/ Competition Laws

CCI objects to Kerala Chemists and Druggists Association practices

The Competition Commission of India found Alkem Laboratories and All Kerala Chemists and Druggists Association guilty of violating provisions under Section 3 of the Competition Act, 2002. The informant, desirous of becoming a medical stockist had his application for appointment rejected by Alkem for failing to obtain a ‘No Objection Certificate’ from the Association. The Commission determined that such a practice of obtaining an NOC from the Association was anti-competitive practice, which adversely affected competition in the market. Alkem, though acting on the “directions and threats: of the Association was chided for not having appeared before the Commission. Its role in facilitating the practice earned it a fine of Rs. 74.63 crores; a cease and desist was issued to the Association.

Tags : No objection certificate kerala alkem chemists

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