Patent Act prevails over Competition Act : Competition Commission lacks jurisdiction

NCLAT Upholds CCI's Dismissal of Anti-Competitive Allegations Against Patented Drug Manufacturer. Patent Act Prevails Over Competition Act in Jurisdictional Dispute on Ferric Carboxymaltose Case

In a landmark decision, the National Company Law Appellate Tribunal (NCLAT) has upheld the Competition Commission of India's (CCI) dismissal of allegations of anti-competitive conduct and abuse of dominant position concerning the patented drug Ferric Carboxymaltose (FCM). The judgment, passed on October 30, 2025, reaffirms the precedence of the Patents Act, 1970, over the Competition Act, 2002, when dealing with matters involving patented inventions.

The appeal, filed by Mr. Swapan Dey, CEO of a hospital providing free dialysis services, alleged that Vifor International (AG), Switzerland, engaged in anti-competitive practices making FCM injections inaccessible and unaffordable. The appellant sought intervention from the CCI, claiming violations of Sections 3 and 4 of the Competition Act, which deal with anti-competitive agreements and abuse of dominant position.

However, the CCI concluded that there was no prima facie case against Vifor, noting that the patent for FCM had expired in 2023, allowing for public exploitation of the drug. The NCLAT judgment, delivered by Justice Yogesh Khanna and Mr. Ajai Das Mehrotra, emphasized that the Patents Act provides the necessary framework for addressing issues related to patent rights, including compulsory licensing and reasonable conditions in licensing agreements.

The tribunal referenced the Delhi High Court's ruling in Telefonaktiebolaget LM Ericsson (PUBL) v. Competition Commission of India, which established that the Patents Act is the special statute governing patent-related disputes, thereby excluding the jurisdiction of the CCI in such matters. This precedent was reinforced by the Supreme Court's recent dismissal of CCI's challenge to the Delhi High Court's decision.

The NCLAT's judgment highlights the legal principle that the Patents Act, being a specific statute, overrides the general provisions of the Competition Act in cases involving patented inventions. The tribunal noted that Section 3(5) of the Competition Act explicitly protects the rights conferred under the Patents Act, allowing patent holders to impose reasonable conditions to safeguard their interests.

This ruling is significant for stakeholders in the pharmaceutical sector, as it clarifies the jurisdictional boundaries between intellectual property rights and competition law. It underscores the importance of the Patents Act in promoting technological innovation and balancing the interests of patentees and the public.

The decision also dismisses the appeal for lack of merit, as the patented drug is now available for public use following the expiration of its patent. The tribunal's judgment brings closure to the legal dispute, affirming the role of the Patents Act in adjudicating issues related to patented inventions.

Bottom Line:

Patent Act prevails over Competition Act in cases where the subject matter pertains to patented inventions, such as drugs, and Competition Commission of India lacks jurisdiction to adjudicate such matters.

Statutory provision(s): Competition Act, 2002 Section 3, Patents Act, 1970 Sections 83, 84, 26(2)

Mr. Swapan Dey v. Competition Commission of India, (NCLAT)(Principal Bench)(New Delhi) : Law Finder Doc Id # 2801341