CCI Penalizes Goa Chemist & Druggist Association for anti-competitive practice

The Competition Commission of India (CCI) has discovered the Chemist & Druggist Association, Goa (CDAG) violating the Section 3 of the Competition Act, 2002 ("Act") for indulging in anti-competitive practices and imposed penalty of Rs. 2 Lakhs @10% on the average of the receipts for financial 2008-09, & 2009-10. CDAG'd guidelines that lays down the margins for wholesalers and retailers was found to be anti competitive affecting the interests of the consumers.CDAG had also prescribed a cap on the amount of the discount a wholesaler can give to the retailer and prohibited the retailer from giving any discounts to the consumers. CCI has directed CDAG to remove the clauses in the circulars, MoU and Guidelines and file an undertaking to this effect within 60 days from the date of receipt of the order. Full order of the CCI can be found here.