COMPAT overturns CCI in stem cell banking case

By Upasana Rao and Somil Kumar, Trilegal
0
2837
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The Competition Appellate Tribunal (COMPAT), in an order dated 18 December 2015, set aside a penalty order of the Competition Commission of India (CCI) under section 27 of the Competition Act, 2002, against Dr LH Hiranandani Hospital (LHH).

Upasana Rao is a partner at Trilegal and Somil Kumar is an associate. Trilegal is a full-service law firm with offices in New Delhi, Mumbai, Bangalore and Hyderabad.
Upasana Rao is a partner at Trilegal and Somil Kumar is an associate. Trilegal is a full-service law firm with offices in New Delhi, Mumbai, Bangalore and Hyderabad.

LHH had given Cryobanks the exclusive right for a period of one year to provide stem cell banking services to maternity patients at LHH. Due to this exclusive arrangement, LHH refused to allow one of its patients to obtain stem cell banking services from Lifecell International (Lifecell), with which the patient had entered into an agreement. Although the patient did not file a complaint with the CCI, a third party informant filed a complaint alleging that LHH’s exclusive agreement with Cryobanks was anti-competitive and had forced the patient to avail of maternity services at another hospital.

Relying on the investigative report of the Director General (DG), the CCI passed a majority order stating that LHH was one of the major players in the “stem cell banking services sector”, and the exclusive contract between LHH and Cryobanks was anti-competitive under section 3(1) of the Competition Act as it had the tendency of distorting the market for stem cell banking and deterring new entrants. The CCI majority also concluded that the agreement was a vertical “tie-in” arrangement that violated section 3(4) of the act. One of the members of the CCI passed a dissenting order holding that the agreement did not contravene section 3(4) of the act and there was no appreciable adverse effect on the market for stem cell banking.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Trilegal_logo_-_BLUE_NEW

New Delhi 311 B, DLF South Court,

Saket, New Delhi – 110 017

India

Tel: +91 11 4163 9393

Fax: +91 11 4163 9292

Email: upasana.rao@trilegal.com

somil.kumar@trilegal.com

 

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link