The Competition Authority has authorised co-operation between smaller pharmacies to respond to COVID-19. The authorisation is intended to allow pharmacies with one to two branches to keep their outlets open, or refer customers to other pharmacies when temporary closures are unavoidable, without those that close losing their long-term customer relationships.
This concerns an exemption pursuant to Article 15 of the Competition Act from the prohibition on cooperation between competitors, as well as an exemption granted to the Federation of Employers under Article 12 of the same Act.
The aim of the derogation is to counteract the effect of the COVID-19 situation and circumstances on reducing the number of competitors and diminishing competition in the retail medicines market, whilst ensuring necessary access to medicines.
On the other hand, the exemption covers pharmacies with 1-2 outlets being able to have a communication platform where they can explore ways to respond to the ongoing problem. However, the exemption also covers pharmacies within the group, e.g. 2-4 pharmacies, being able to collaborate, which may include the temporary closure of outlets, without the pharmacy in question disappearing from the market.
The exemption is subject to conditions as set out in more detail in Decision no. 15/2020. This provides, amongst other things, that the Medicines Agency shall be given the opportunity to participate in all communications relating to the preparation and planning of cooperation that may arise from the authorisation. This ensures that the Medicines Agency has oversight of the relevant collaboration and can ensure that the requirements set out in the legislation are complied with.
The decision (no. 15/2020) is available here.
