Press Release
C. 17-13 th
El Salvador, August 15 , 2013.
CS begins preliminary investigation for alleged price fixing in pharmaceuticals The Competition Superintendence (CS) will preliminarily investigate the conduct of certain economic agents in the pharmaceuticals market who, pursuant to elements presented by the National Pharmaceuticals Direction (hereinafter “NPD”) and collected ex-officio by said institution, could have fixed prices of more than 20 products, jeopardizing economic efficiency and consumer welfare. “The Competition Superintendence has begun a prior investigation to find elements of an alleged anticompetitive practice amongst competitors (horizontal agreement) in the pharmaceuticals market. There could be sales price fixing”, asserted Francisco Diaz Rodriguez, Competition Superintendent.
The Competition Superintendence will initiate a prior investigation to gather information which will allow said agency to find elements that the economic agents who participate in the distribution chain of some pharmaceuticals could have carried out a horizontal agreement. The institution has become aware of an alleged identity of sales price of various products. This similarity in prices may respond to a horizontal agreement like the one typified in Provision 25 letter a) of the Competition Law (CL). In such case, the Competition Superintendence will execute the respective preliminary investigation to find basis for the detected elements o discover new ones, and then, according to the findings, begin a administrative sanctioning procedure.
The NPD provided the Competition Superintendence with information related to the analysis of the existence of possible links amongst certain economic agents that participate in this market. Furthermore, gave information pertaining to the sales price of some products from a number of laboratories, distributed by specific drugstores, becoming aware of price similarities in a group of them. The Competition Superintendence has ex-officio collected related documentation regarding the situation brought up by the NPD and has also requested relevant information to said office. In accordance with Provision 25 letter a) of the CL: “Anticompetitive practices among competitors are prohibited; these practices include the following, amongst others: a) Establish agreements to fix prices or other purchase or sales conditions under any form whatsoever”. Provision 41 of the CL establishes that: The Superintendent may carry out, before starting a sanctioning procedure, previous actions through the officials of the Superintendence with the power to investigate, inquire and inspect any anticompetitive practice, with the purpose of preliminarily determining the concurrence of potential violations to the Law”. If as a result of this prior investigation, the CS proves the existence of elements of an anticompetitive practice the Competition Superintendence will ex-officio begin an administrative sanctioning procedure. If the existence of a horizontal agreement is proven, the CS will, amongst other actions, order the anticompetitive practice to be ceased and impose the respective fines, as sanctions.