ISLAMABAD: The Competition Commission of Pakistan (CCP) has completed an inquiry and issued a show-cause notice to the Pharma Bureau for prima facie engaging in collusive activities in violation of Section 4 of the Competition Act, 2010.
Pharma Bureau is the association of multinational pharmaceutical companies (MPCs) and is part of the Oversees Investors’ Chamber of Commerce and Industry. The Commission took notice and conducted the inquiry against Pharma Bureau and its members for prima facie unreasonably increasing the prices of various medicines through collusive practices.
As part of the inquiry, the Commission also conducted a search and inspection of the Pharma Bureau early this year under Section 34 of the Competition Act during which the Bureau fully cooperated with the inspection team of CCP and handed over the relevant record to CCP for examination.
The enquiry report concluded that the Pharma Bureau and its members appear to have been involved in sharing of strategic and commercially sensitive information, providing updates and overview of prices, cost, profits, demand, and the industry as a whole. The report further stated that this information was used to deliberate upon and prepare recommendations, agreements and decisions on increase in prices of various pharmaceutical products by the companies through the platform of Pharma Bureau.
It would be pertinent to mention here that Section 4 of the Act, inter alia, prohibits trade associations from taking decisions on commercial matters of its members such as pricing, production, and sales etc. As per the inquiry report, the sharing of above information by Pharma Bureau and its members constitute prima facie violation of Section 4 of the Act.
