CCI imposes ₹3.8-cr fine on Hiranandani Hospital

New Delhi February 21, 2014:- The Competition Commission of India has imposed a penalty of ₹3.81 crore on super specialty hospital Dr L H Hiranandani Hospital, Mumbai, for abusing its dominant position in the area of stem cell bank.

Ramakant Kini had approached the CCI alleging that the hospital had abused its dominant position in the area of stem cell banks and did not allow the stem cell of the child to be collected by any other service provider except Cryobank with whom it had an exclusive agreement.

The Director General Investigation, which undertook a detailed probe, had arrived at the conclusion that exclusive arrangements between two undertakings do not accrue any benefit to the consumer and are rather at the cost of consumer.

The CCI also considered it as an abuse of dominance by Hiranandani Hospital and the conditions imposed on its patients that in case one had to avail themselves of stem cell banking system, they will only have to use the services of Cryobank, as abusive and violative of the Competition Act.

Besides imposing a penalty, CCI said that the agreement with Cryobank for the years 2011-12 and 2012-13 were null and void.

CCI said that the penalty is to be deposited within 60 days of receipt of the order.