Spain: Regulator launches probe into wholesale drug market

Spanish competition regulator CNMC has announced the launch of a probe to look into the country’s wholesale distribution of medication. The probe has been motivated by possible barriers to competition detected by the regulator, attributed to the current structure of the market.

The CNMC has said it recognizes the need to protect the public interest, which is inherent in the regulation of this market. However, they add, it is also essential for regulation to adhere to the principles of necessity and proportionality, avoiding the introduction or protection of unfair restrictions to competition.

The preliminary investigation by the CNMC has detected a seres of possible restrictions to competition, which will be elaborated upon during further investigations. The analysis will be complemented by a study into alternative mechanisms, such as centralized purchasing or public auction contracts, in order to determine their impact on prices and market efficiency. The probe will also look to study the design and usage of both of these mechanisms as tools for introducing greater competition in the sector.

Full Content: CNMC

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