CCI Dismisses the Allegations of Anti-Competitive Agreements and Abuse of Dominant Position against Macleods Pharmaceuticals Limited and Bengal Chemist Druggist Association

On May 23, 2019, CCI, at the outset, dismissed the allegations of anti-competitive agreements and abuse of dominant position against Macleods Pharmaceuticals Limited (‘MPL’) and Bengal Chemist Druggist Association (‘BCDA’) filed by Mr. Kuntal Chowdhury (‘Informant’).[1]

The Informant was involved in the wholesale business of medicines and had been a stockist of MPL since 2012-13. The Informant’s allegation related to stoppage of medicine supplies by MPL at the behest of BCDA, since the Informant’s brother and BCDA had been engaged in litigation pertaining to mismanagement of elections of BCDA. The Informant also alleged that MPL had begun supplying to the Informant in the first instance upon receipt of an introductory letter issued by BCDA (alleged to be a form of an NOC).

Based on the parties’ submissions, CCI observed that MPL stopped supplying medicines to the Informant because of delayed payments and the non-adherence by the Informant to conditions of advance payment. Additionally, since the stockistship of the Informant was still operative with MPL, the Informant could obtain supplies by making advance payment. Therefore, the allegation of non-supply of medicines was rejected. Additionally, in the absence of any evidence which either proved the existence of an NOC or any conditional clearance of stockistship, the allegations against BCDA were dismissed.  Thus, the allegation of requiring an NOC by the Informant from BCDA to become a stockist of MPL was also not substantiated, and the complaint was dismissed.

[1] Case No. 44 of 2018

Published In:Inter Alia Special Edition- Competition Law - July 2019 [ English
Date: July 5, 2019