Competition Commission cannot examine disputes related to patented product: NCLAT

New Delhi: The National Company Law Appellate Tribunal (NCLAT) has ruled that the Competition Commission of India (CCI) has no authority to examine disputes involving patented products, as such matters fall under the purview of the Patent Act.

Dismissing an appeal against a CCI order that had closed a complaint against Swiss pharmaceutical firm Vifor International AG, the two-member NCLAT bench said, “The Patent Act will prevail over the Competition Act in this case.”

The tribunal cited previous rulings of the Delhi High Court in Telefonaktiebolaget LM Ericsson (PUBL) and the Supreme Court’s order in SLP No. 25026/2023, reaffirming that CCI lacks the power to investigate patent-related allegations.

The case centred on Ferric Carboxymaltose (FCM) injection, patented by Vifor, which is used to treat iron deficiency anaemia (IDA).

NCLAT noted that under Section 3(5) of the Competition Act, patent holders are permitted to impose reasonable conditions to protect their rights, and such actions are exempt from competition law scrutiny.

The appeal had been filed by Swapan Dey, CEO of a hospital providing free dialysis services under the Pradhan Mantri National Dialysis Programme (PMNDP). He argued that Vifor’s alleged anti-competitive conduct made FCM injections unaffordable and inaccessible to patients.

However, the CCI, in its order dated October 25, 2022, found no prima facie evidence of contravention under Sections 3(4) or 4 of the Competition Act and closed the case. Dey challenged this decision before NCLAT, alleging that CCI failed to assess Vifor’s dominance and the relevant market correctly.

Vifor, in response, questioned the CCI’s jurisdiction, maintaining that issues concerning patented molecules are governed by the Patent Act. It also informed the tribunal that the FCM patent, granted on June 25, 2008, had expired on October 21, 2023, and the drug was now in the public domain, open for manufacture and sale by any party.

While acknowledging the patent’s expiry, the NCLAT clarified that its focus was on whether CCI had jurisdiction when the molecule was still under patent protection.

Citing the Delhi High Court’s decision—later upheld by the Supreme Court on September 2, 2025—the appellate tribunal concluded,

“Following judicial guidance, we find no merit in this appeal. Accordingly, the appeal is dismissed.”