Vivek Sharma Vs BLK Max Super Specialty Hospital (Competition Commission of India)
The matter arose from information filed before the Competition Commission of India alleging that disposable syringes manufactured by Becton Dickinson India Pvt. Ltd. and sold through the in-house pharmacy of Max Super Specialty Hospital, Patparganj carried higher MRPs than identical products sold in the open market. The allegation was that the manufacturer and hospital had colluded to overcharge patients. Following a prima facie order under Section 26(1) of the Competition Act, 2002, the Director General (DG) investigated the matter. The DG later found no evidence of collusion or exclusive agreements between the syringe manufacturer and the hospital and concluded that there was no contravention of Section 3(3) of the Act.
However, the DG examined whether private super-specialty hospitals abused dominance by compelling admitted patients to buy medicines, consumables, medical devices, and tests from in-house facilities at allegedly excessive prices. Supplementary investigation widened the scope to 12 super-specialty hospitals in Delhi, including BLK Max Super Specialty Hospital. The DG concluded that these hospitals operated as independent markets and were dominant in their respective aftermarkets for admitted in-patients. The DG further alleged abuse under Section 4 on five parameters: room rents, medical tests, medical devices, consumables, and medicines.
