Forced sale of unnecessary medicines: Competition Committee investigates complaints against distributors
The Competition Committee warned pharmaceutical distributors against tying the sales of high-demand medicines to other goods. 47.2 percent of imports account for 5 companies. The department stated that such pressure harms small businesses and that violators face a fine of 5% of revenue.
Forced sale of unnecessary medicines: Competition Committee investigates complaints against distributors
The Committee for the Development of Competition and Consumer Rights Protection has urged wholesale pharmaceutical distribution companies to strictly comply with the requirements of competition legislation and reminded them of the liability for violations.
It is reported that during the last 9 months, medicines were imported into the country by 305 enterprises. At the same time, a large share of the market is concentrated in the hands of a few major players: 47.2 percent of total imports account for just 5 importers.
According to the Committee, complaints against certain importers and wholesale distributors have recently increased on social networks and among entrepreneurs. In particular, when purchasing in-demand and high-demand medicines, a condition is being imposed to forcibly bundle other preparations that are less in demand or were not ordered at all.
“Such cases can harm the economic interests of small business entities, restrict their activities, and negatively affect the competitive environment in the market,” the statement said.
For this reason, the agency has launched investigations into anti-competitive terms in wholesale trade.
In accordance with Article 14 of the Law "On Competition", the ability of non-dominant entities to unilaterally influence contract terms, prices, or sales territory is recognized as superior bargaining power. According to Article 18 of the Law, the following actions are considered an abuse of superior bargaining power:
The Committee also reminded that there are serious financial sanctions for violating competition legislation. The amount of the sanction may constitute 5 percent of the revenue received from the sale of goods during the period in which the violation was committed (but not exceeding the last 3 years).
Currently, relevant investigations are being continued by the agency. If the conditions of forced purchase and other violations are confirmed, strict measures established by law will be taken against the offending entities.