The Tax Publishers 2022 TaxPub(CL) 2842 (CCI) : (2022) 173 SCL 0271

COMPETITION ACT, 2002

Section 3

Complainant filed complaint against Association's practice of collecting PIS charges for launching new medicines by pharmaceutical companies, but launch of new products was not impeded by the Association for want of PIS, payment of PIS was made on voluntary basis, no case of contravention of provisions of section 3 was made out against the Association.

Anti-competitive agreements - Complaint against practice of collecting PIS charges for launch of new medicines - Payment of PIS made on voluntary basis - Contravention of section 3 not established with evidence

Complainant filed complaint against Druggists Association that the Association's practice of collecting PIS/LOC/NOC charges for launching new medicines by pharmaceutical companies was in contravention of section 3. The Association stated that purpose of receiving PIS charges was to enable the dissemination of information and PIS payment was made on voluntary basis by pharmaceutical companies, which was not anti-competitive. Held: The practice of charging PIS charges becomes anti-competitive if the same are mandatory in the sense that absence of payment will lead to new drugs not being introduced in the market, juxtaposed against this, a voluntary decision of manufacturers/pharmaceutical companies to avail it on voluntary basis makes it fall outside the purview of the Act. The pharmaceutical companies informed that launch of their new products in the State was not impeded by the Association for want of PIS and payment of PIS was made on voluntary basis to the Association. Consequently, from the evidences available on record CCI held that it was not conclusively established that the association had mandated payment of PIS. No case of contravention of provisions of section 3 was made out against the association. Thus, the complaint was closed.

REFERRED :

FAVOUR : Against the complainant

A.Y. :



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