Monday, 2 September 2013

A-apoteket:s decision to expel Uldum Apotek is illicit according to Danish CA



Matas is the largest health and beauty retailer in Denmark. It offers a distinctive one-stop retail concept which serves a broad range of health, beauty, household and personal care needs. The Matas Store Network consists of a network of 293 Matas stores in Denmark.

A-apoteket is the biggest pharma retail chain in Denmark comprising 112 pharmacies, 35 branches and 58 outlets.

In 2011 the Danish legislation was amended allowing the pharmacists to freely establish so-called “medicine delivery points” all over the country. A medicine delivery point is normally established in cooperation with a different company, e.g. a supermarket, as a “shop-in-shop” concept. Uldum Apotek took advantage of the change and made an agreement with Matas. Uldum Apotek is a former member of A-apoteket, Denmark’s largest purchasing association for pharmacists.

A-apoteket decided to oust Uldum Apotek because of the partnership with Matas – even though A-apoteket is only involved in negotiating discount deals on non-pharmaceuticals and the partnership with Matas was limited to pharmaceuticals, i.e. the partnership concerned a different product market.

The Danish Competition Authority expressed concerns that a decision to prohibit a member to establish medicine delivery points in Matas’ shops, and to expel the member for refusing to comply with the exclusion, could significantly restrict competition on the pharmaceutical markets. Especially taken into account that (I) the establishment of medicine delivery points are the only real way for pharmacists to compete, (II) Matas is one of the most obvious partners for such an enterprise and (III) the partnership with Matas did not appear to negatively influence A-apoteket’s work, and thus the decision made by A-apoteket could not be considered ancillary to the operation of A-apoteket.

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