Pharma trade Associations from across the country are planning to approach the Centre for exempting pharma traders out of CCI's scrutiny and contest the Competition Commission of India's (CCI) actions against anti-competitive and monopolistic trade practices by the trade bodies in contravention of the provisions of Competition Act.

Advocating the need to keep the pharma trade out of the purview of the competition watch dog's scrutiny, trade bodies have argued that CCI should not intervene in matters of regulating or monitoring prices of pharma products as the powers and prerogative for regulation, fixation and monitoring of prices lies solely with the National Pharma Pricing Authority (NPPA).  
 
This comes close on the heels of trade body All India Organisation of Chemists and Druggists (AIOCD) filing a caveat with the Competition Appellate Tribunal (COMPAT) to review the penalty imposed by CCI of Rs.47.41 lakh on them. AIOCD has already deposited the amount imposed as penalty to avoid non-compliance to the order issued by the CCI in February last year.   

The competition watchdog had found AIOCD guilty of indulging in unfair trade practices that influenced the prices of medicines and restricted supplies into the market based on complaint, filed by Odisha-based Santuka Associates. Santuka Associates, a clearing and forwarding agent of various pharmaceutical companies, had alleged that AIOCD was abusing its dominant position by limiting and restricting supply of pharmaceutical drugs.

The Commission had asked AIOCD to discontinue the practice of granting No Objection Certificate (NOC) for appointment of stockists, fixation of trade margins besides doing away with boycott of products of pharmaceutical companies."It (AIOCD) shall also inform all Chemists & Druggists and all its members and associations by sending a circular/letter that they were free to give discounts to the customers. Besides this, Product Information Service (PIS) charges were not mandatory and that the same could be availed by manufacturers/pharmaceuticals firms on voluntary basis," the CCI order said.