India: Fines imposed after restricted drug supply investigation

The Competition Commission of India fined drugmaker Lupin Ltd and a Karnataka chemists’ body on Tuesday in a case involving restricted drug supply in the southern state.

The CCI imposed a penalty of nearly $11 million on Lupin, which had refused to supply drugs to Maruti & Co., a drug wholesaler in Karnataka, on the ground that the drugmaker did not have a no-objection certificate (NOC) from the Karnataka Chemists and Drugs Association. The regulator also fined KCDA $860,000 for indulging in the anti-competitive practice of restricting supply of drugs to pharmaceutical companies in Karnataka.

A detailed investigation by the CCI found that KCDA was indulging in the anti-competitive practice of mandating an NOC.

The regulator also found three office-bearers of KCDA and two officials of Lupin actively involved in the anti-competitive arrangement leading to the refusal of drugs to Maruti & Co. which filed the petition leading to the investigation.

Full Content: Live Mint

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.