CCI releases key findings and observations on Market Study on Pharmaceuticals Sector in India
The Competition Commission of India (CCI) has released here today a report titled ‘Market Study on the Pharmaceutical Sector in India: Key Findings and Observations’ (‘the study’).
The report may be accessed at:
With the overarching objective of understanding the factors that influence price competition in the pharmaceutical sector, the study focused on the specific realms of pharmaceutical distribution and the role of trade associations therein, trade margins, online pharmacies and the prevalence of branded generic drugs in India and its implications for competition. Since the pharmaceutical sector is a regulated sector, the study also attempted to explore the areas of interface between regulation and competition with a view to ascertain the CCI’s advocacy priorities.
The report summarises the main findings and the CCI’s observations based on the study. It is expected that the insights gained from the market study will inform and contribute significantly to the design of the pharma market in India to help attain the objective of affordable medicines for all.
CCI imposes a penalty on paper manufacturers for indulging in cartelisation
The Competition Commission of India (CCI) issued a final order yesterday against certain companies manufacturing paper from agricultural waste and recycled wastepaper as well as an association, which were found to have contravened the provisions of Section 3(1) of the Competition Act, 2002 (Act), read with Section 3(3)(a) thereof, which proscribe anti-competitive agreements.
The case was initiated suo motu by the Commission on the basis of certain material found during the ongoing investigations of two other cases. Although the DG investigated 21 original paper manufacturers and the association, it only recorded findings of contravention of the provisions of Section 3(1) of the Act read with Section 3(3)(a) thereof against ten (10) such paper manufacturers and the association. The period of cartel was noted by the DG to be from September 2012 till March 2013.
CCI found these companies and an association which provided its platform, for such activities to have indulged in cartelisation in fixing the prices of writing and printing paper.
In this backdrop and further considering that during the pandemic, most businesses moved to the virtual mode thereby reducing the need for paper and affecting the paper business, CCI imposed a symbolic penalty of Rs. 5 lakh each on the ten (10) paper manufacturers found guilty of cartelisation.
Further, a penalty of Rs. 2.5 lakh was imposed on the association for providing its platform for anti-competitive activities. Apart from the above, CCI also directed the above paper manufacturers and the association, and their respective officials who have been held liable in terms of the provisions of Section 48 of the Act, to cease and desist in the future from indulging in anti-competitive conduct.
A copy of the order is available on the CCI website at www.cci.gov.in.
