UOKiK probes software-enabled exchange of strategic information between pharmaceutical wholesalers
Following the dawn raids conducted in September 2020, the President of the Polish Office for Competition and Consumer Protection (UOKiK) has initiated antitrust proceedings against 10 entities – 8 pharmaceutical wholesalers and 2 software providers.
In its press release of 28 February 2022, UOKiK expresses its view that the 10 entities may have concluded an agreement to exchange competitively sensitive (strategic) information on, inter alia, the price lists used, discounts granted and margins.
UOKiK alleges that pharmaceutical wholesalers have used software installed in pharmacies to obtain access to competitively sensitive information on the prices, discounts and margins of their competitors.
UOKiK did not specify whether the software used for an alleged exchange of information was a standard software offered by the IT providers, or whether it was developed specifically for the purpose of allowing access to competitors’ data. UOKiK also did not comment on the extent to which the software companies were aware of the alleged practice.
The President of UOKiK has stated that the exchange of information between pharmaceutical wholesalers may have restricted competition in the market and resulted in higher prices for consumers in pharmacies.
The allegations concern pharmaceutical wholesalers (Farmacol ITB, Farmacol, Farmacol Serwis, Farmacol-Logistics, Farmateka, Neuca, Polska Grupa Farmaceutyczna, and Świat Zdrowia) and two medical information technology software providers (Kamsoft and SoftForYou).
The practices suspected by the Authority may violate both national and EU legislation. If the allegations are confirmed, the accused companies face penalties of up to 10 per cent of their annual turnover.
Interestingly, this is not the first time when the software used in the pharmaceutical sector was subject to UOKiK’s investigation. The other time it concerned a situation where software was allegedly used to restrict pharmacies’ access to the supply of certain drugs.
The press release of the Polish competition authority is available here (in English)
For more information, please contact Piotr Dynowski and Marcin Alberski.
