CPC launches sector inquiry of the pharmaceuticals market

The Commission for Protection of Competition (CPC) initiated a sector inquiry on the wholesale and retail market of pharmaceutical products.

The study will focus on the structure and conditions under which the markets in the supply chain of medicines function, the behaviour of participants in the drug supply process as well as the reasons for the observed shortages or absence of medicines in the country from the beginning of the year.

The shortage of medicines is a problem of high public importance and the Commission has identified in its practice that the possible causes are related to production problems leading to delay or interruption of production, deficiency of raw materials, increased demand and use of certain medicines as well as distribution problems, parallel export possibilities, price regulation, etc. In addition, publicly available EC and OECD data shows that in 2024 direct patient payments for healthcare services are one of the main contributors to Bulgaria's high healthcare costs, which are estimated at 34% of household income, whereas the EU average is 14.5%, further increasing public sensitivity to the affordability and pricing of medicines.

The sector analysis will also further examine other suspected problems in the pharmaceutical market, such as unequal treatment of pharmacies by wholesalers as well as parallel trade in banned for export medicines.

The sectoral analysis will examine to what extent potential problems in the pharmaceutical sector are influenced by objective circumstances or are a consequence of distortions in the market environment, through the application of possible anti-competitive practices, which may lead to a real distortion of competition and consumer rights.

In case the sectoral analysis of the pharmaceuticals market detects facts, which meet the criteria of infringements such as unfair commercial practices, abuse of a dominant position or prohibited agreements, the Commission will report and initiate the relevant proceedings to establish them.

Within the framework of the instituted cooperation between the CPC, the National Revenue Agency and the Commission for Consumer Protection, the large-scale survey will also monitor possible unjustified price increases before and after the introduction of the euro, which are caused by possible anti-competitive practices.

The full text of the decision is available in the CPC's public electronic register at: https://reg.cpc.bg

Information falling within the scope of the inquiry could be submitted to the Commission by email at delovodstvo@cpc.bg or on the CPC's anonymous whistleblowing platform at https://www.cpc.bg/signals