ANTITRUST AUTHORITY OPENS INQUIRY INTO SEVEN PHARMACEUTICAL DISTRIBUTORS OVER POSSIBLE ANTI-COMPETITIVE ARRANGEMENT
PRESS RELEASE
PRESS RELEASE
Antitrust Authority opens inquiry into seven pharmaceutical distributors over possible anti-competitive arrangement
As an interim measure, non-prescription medicines must also be supplied to over-the-counter retailers
The Italian Competition Authority, at its meeting on 27 September 2006, decided to open an inquiry into a possible anti-competitive arrangement by seven distributors of pharmaceuticals. According to a number of complaints received, Alleanza Salute Italia S.p.A., Alleanza Salute Distribuzione S.p.A., Galenitalia S.p.A., Comifar S.p.A., Comifar Distribuzione S.p.A., Safar Società Cooperativa and Itriafarma Società Cooperativa are reported to have refused, without good reason, to supply non-prescription medicines to retailers of over-the-counter products. The conduct of these wholesalers, in which pharmacies have significant shareholdings, leads the Authority to deduce the existence of a coordinated refusal to supply these medicines so as to obstruct the entry of new competitors into the retail marketplace. Otherwise it would be difficult to explain their refusals to satisfy the retailers’ requests: no wholesaler would have an interest in refusing supply unless it was sure that the other distributors operating in the same geographic area would do likewise.
The Authority, seeing here the risk of serious and irreparable damage to competition, further decided, as an interim measure, that the seven companies should desist from their conduct in refusing to supply over-the-counter products to non-pharmacy outlets and should inform the Authority in a timely fashion as to the steps they have taken. The wholesalers’ conduct is unjustifiably delaying the implementation of the liberalization measures introduced by Law 248/06 (the so-called Bersani-Visco law) which legalized the sale of non-prescription drugs by retailers other than pharmacies so long as they have a special department for the purpose staffed by one or more qualified pharmacists who are registered with their professional Order. Such delays run counter to the intentions of the government, which had recourse to a decree-law to regulate these matters.
At the present time, there is practically no retailing of non-prescription medicines through channels other than pharmacies. Supermarket sales are still at an embryonic stage and, besides, in the Regions where the refusals took place (Puglia, Basilicata and Abruzzo) the supermarket and hypermarket channels are not as well developed as in other Regions of the country. On the other hand, the entry of non-pharmacy retailers may represent a particularly effective competitive stimulus, given the closeness of their commercial formula to that of pharmacies. In this phase of market liberalization, there is a key role to be played by non-pharmacy outlets which at present number about 1,400, if we consider only those already managed by pharmacists; forecasts call for a significant increase in their numbers with the opening around 4,500 shops in the next two years. Specifically, there are now 30 such outlets in Abruzzo, 10 in Basilicata and 70 in Puglia.
In the initial investigative phases of the inquiry the Authority made use of the cooperation of the Guardia di Finanza (Customs and ExcisePolice). It must be completed by 21 September 2007.
Rome, 28 September 2006