Decision on cartel of pharmaceutical distributors confirmed

2007-11-15
Chairman of the Office for the Protection of Competition Martin Pecina confirmed by his second-instance decision a fine amounting to 113.064 million CZK imposed on four largest pharmaceutical distributors in the Czech Republic.

Companies Alliance UniChem CZ (CZK 23.859 million), GEHE Pharma Praha (CZK 16.831 million), PHARMOS (CZK 18.638 million), and PHOENIX Lékárenský velkoobchod (CZK 53.736 million) violated the Competition Act when during the period from January 30, 2006 until February 14, 2006, they coordinated their joint intent to suspend, effective as of February 15, 2006, the supply of the full range of pharmaceuticals to three important teaching hospitals – Thomayerova, Na Bulovce (both in Prague), and Nemocnice u Sv. Anny (in Brno). They implemented their joint intent as of the said day in a coordinated fashion when they began to supply the hospitals concerned only with “vital” pharmaceuticals, with significantly shortened payment maturity periods. The suspension of the supply of pharmaceuticals to the three hospitals, and the shortened payment maturity periods as of February 15, 2006, was announced by the distributors at a joint press conference held on February 14, 2006.

They used these anticompetitive steps to accomplish a common goal, i.e., payment of debts by the hospitals concerned. While it is not a problem when distributors seek payment of their receivables, they must not coordinate their activities in the supply of pharmaceuticals, or harmonize their business terms, to that end. During the administrative proceeding, the Competition Office gathered nearly two dozen exhibits evidencing such conduct. This case constituted acting in concert, where undertakings replace the risk of mutual competition by deliberate practical cooperation.

External Relations Department of the Office

2025-07-02 / Office Fines Major Cartel in Railway Construction Sector More Than CZK 150 million By its first-instance decision, the Office for the Protection of Competition has imposed fines totalling CZK 157,693,000 on six undertakings for a series of cartel agreements related to public contracts...

2025-06-12 / EUROMEDIA and PEMIC Concentration Approval Subject to Commitments, Acquirer is Obliged to Divest the Wholesale Distribution of Printed Books The Office for the Protection of Competition (hereinafter referred to as “the Office”) has approved the concentration of undertaking EUROMEDIA GROUP, a.s., PEMIC BOOKS a.s. and BOOKNET s.r.o. subject...

2025-06-10 / The Office Launches Sector Inquiry in the Area of Publicly Accessible Charging Stations for Electric Vehicles The Office for the Protection of Competition (hereinafter referred to as "the Office") has launched a sector inquiry into the area of publicly accessible charging stations. Specifically, it is examining...

2025-04-25 / New competition tools: the way to more efficient competition law enforcement Opening remarks of the Chairman of the Office for the Protection of Competition Petr Mlsna delivered at the Interanational Chamber of Commerce Czech the Antitrust Conference in Prague on 24 April 2025...

2025-04-22 / MIDs Competition Authorities: Strengthening Competitiveness and Competition in the EU Single Market The Czech Office for the Protection of Competition, together with the competition authorities of Belgium, Ireland, the Netherlands, Portugal and Austria, has issued a joint statement warning against...

2025-01-08 / Google Made Changes to one of its Services in Reaction to the Investigation of the Office Last year, the Office for the Protection of Competition investigated possible abuse of a dominant position by Google Czech Republic, s.r.o, its parent company Google International LLC and Google Ireland...

2024-11-19 / Pet Food Supplier VAFO Has to Pay CZK 120 million for Prohibited Resale Price Fixing The Office for the Protection of Competition (hereinafter referred to as “the Office”) imposed a fine of CZK 120,121,000 on the undertaking VAFO PRAHA (hereinafter referred to as "VAFO") for the...

2024-10-16 / The Office is Conducting a Dawn Raid at the Premises of the Undertaking Seznam.cz Following numerous media inquiries, we confirm that the Office for the Protection of Competition (hereinafter referred to as “the Office“) is conducting an unannounced inspection of Seznam.cz

If you want to recieve news by email please give us your adress and choose topic.

Email:
Significant Market Power
Public Procurement
State Aid
Competition
Significant Market Power
cs | en
+420 542 167 111 · posta@uohs.gov.cz
cs | en