Bulgaria’s antitrust watchdog has accepted the compliance measures taken by Phoenix Pharma to address competition concerns over its planned acquisition of the Medaya pharmacy chain. The decision follows a detailed review of the company’s market position and software practices.
The Bulgarian arm of Phoenix Pharma, the largest European pharmaceutical distributor, had sought approval last year to take control of 47 Medaya pharmacies. The Commission for the Protection of Competition (CPC) approved the deal only after imposing conditions to prevent potential anticompetitive behavior.
Phoenix Pharma holds a dominant position in wholesale pharmaceutical distribution, particularly for drugs it exclusively distributes. It also owns pharmacy software widely used across the country, raising concerns about data access and market influence.
The CPC commissioned an audit by an international accounting firm to assess whether the software, called Apteka Expert, could grant Phoenix access to sensitive competitive data. While the audit found no inherent capability for such access, the CPC will continue monitoring its use. If evidence suggests the software is being used for anticompetitive purposes, the regulator can impose additional measures.
Pharmacies currently using the software can now terminate their contracts without penalties or legal consequences. Phoenix must also notify the CPC if it raises prices by more than 10% above inflation, providing an economic justification for any such increase.
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Beyond software, Phoenix has committed to adopting Delivery Rules for Prescription Drugs listed in the Positive Drug List, where it acts as the sole distributor. These rules ensure equal and transparent access for wholesalers and retailers, guaranteeing patients access to necessary medications.
The approved rules prohibit anticompetitive tactics such as exploitative pricing, dumping, discrimination, or loyalty discounts. All wholesale and retail requests must be documented and traceable. Phoenix must publish the full rules on its website for public access.
A dedicated section of the rules addresses distribution during shortages of exclusive drugs. The CPC will incorporate its findings into the sector’s broader pharmaceutical analysis, potentially leading to binding regulations for major wholesalers. These could require fair allocation during supply crises and better alignment with patient needs.
The CPC’s decision in late 2023 allowed Phoenix Bulgaria to acquire the 47 Medaya pharmacies, following a month-long deep dive into the deal’s potential impact. The review had begun after Phoenix announced plans to lease the pharmacies and take ownership of key assets.
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