The Board of Directors of the Egyptian Competition Authority (ECA) approved in its meeting Tuesday the referral of four companies for medicine distribution to the prosecutor general on charges of monopolistic practices.
ECA Chairperson Mona El-Garf said the board approved the report, which was prepared by the authority.
The report revealed that four companies for medicine distribution violated Law 3/2005 on the Protection of Competition. Furthermore, the report revealed those companies will agree on the unification of marketing and selling policies to reduce credit periods and reduce cash discount granted to small and medium-sized pharmacies. These violations contradict Clauses (A) and (D) in Article 6 of the law.
The ECA said the offence hurts small and medium-sized pharmacies and undercuts the profit margins of these pharmacies. It also restricted their ability to provide all medicines in the quantities and varieties needed, and caused them to lose some of their customers.
It has also hurt citizens by creating obstacles for access to medicines in remote areas.