Vivek Sharma Vs Max Super Specialty Hospital (Competition Commission of India)
The case originated from an information filed by Shri Vivek Sharma under Section 19(1)(a) of the Competition Act, 2002 against Becton Dickinson India Pvt. Ltd. and Max Super Specialty Hospital, Patparganj, Delhi. The allegation was that Becton Dickinson, in collusion with the hospital, printed higher Maximum Retail Prices (MRPs) on disposable syringes sold through the hospital’s in-house pharmacy compared to the same products sold in the open market.
The Competition Commission of India (CCI) initially formed a prima facie opinion of possible contravention of Section 4 of the Act and directed the Director General (DG) to investigate. After investigation, the DG found no evidence substantiating collusion between Becton Dickinson and the hospital regarding inflated MRPs. It was observed that there was no exclusive agreement between them, and therefore no contravention of Section 3(3) of the Act was established. The Commission accepted this finding.
However, the DG also examined whether the hospital abused its dominant position. The DG defined the relevant market as the “provision of healthcare services/facilities by private super-specialty hospitals” and concluded that hospitals compelled in-patients to purchase medicines, consumables, and devices only from in-house pharmacies, thereby earning significant profit margins. The DG treated this as “aftermarket abuse” and found contravention of Section 4(2)(a)(ii) of the Act.
