Vivek Sharma Vs Max Multi Specialty Centre (Competition Commission of India)
The Competition Commission of India (CCI) examined allegations arising from Information filed under Section 19(1)(a) of the Competition Act, 2002 against Becton Dickinson India (P) Ltd. and Max Super Specialty Hospital, Patparganj, Delhi. The Informant alleged that disposable syringes manufactured by Becton Dickinson India (P) Ltd. carried higher Maximum Retail Prices (MRPs) when sold through the hospital’s in-house pharmacy compared to identical products sold in the open market.
After a preliminary inquiry, the CCI directed the Director General (DG) to investigate possible contraventions of Sections 3 and 4 of the Act. The DG initially found no evidence of collusion between Becton Dickinson India (P) Ltd. and Max Patparganj regarding inflated MRPs, noting that the hospital procured syringes through independent distributors and that no exclusive arrangement existed between the parties. Consequently, the Commission agreed that no contravention of Section 3(3) of the Act had been established.
However, the DG separately examined whether private super-specialty hospitals abused their dominant position by compelling admitted patients to purchase medicines, consumables, devices, and diagnostic services from hospital facilities at allegedly excessive prices. The investigation was expanded to include 12 private super-specialty hospitals in Delhi, including Max Panchsheel Park. The DG treated each hospital as a separate relevant market and concluded that the hospitals were dominant in their respective markets for healthcare services provided to in-patients admitted to those hospitals.
