Czech Republic: Health products distributor fined for resale price maintenance

03 April 2019 | newsletters

The Office for the Protection of Economic Competition recently fined Czech health products supplier TCM Herbs Kc853,000 (approximately €33,500) for resale price maintenance (RPM).(1)

TCM Herbs distributed traditional Chinese medicine products on the Czech market. According to the office, the distributor had infringed both Czech and EU competition law by setting minimum retail prices with its distributors between 5 August 2015 and 22 January 2018, while further limiting its distributors' sales to end customers only.

The office concluded that this practice had distorted competition in the Czech traditional Chinese medicine market and had a material impact on trade between EU member states.

TCM Herbs has appealed the decision.

The office has not issued an RPM decision in a long time. As such, the outcome of the review by its chair will be closely followed (and hopefully indicative in terms of how (or if) the office will consider a more economic approach).

This article was co-authored by Monika Svikova.

This article first appeared on International Law Office.

Endnotes

(1) The decision has not yet been published. The office only issued respective press releases, available at www.uohs.cz/cs/hospodarska-soutez/aktuality-z-hospodarske-souteze/2527-urad-odhalil-protisoutezni-vertikalni-dohody-pri-prodeji-produktu-pripravku-cinske-mediciny.html) (in Czech). Based on the press release, TCM Herbs has appealed the decision.

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Further reading:
Austria: Pharmaceutical industry remains in the focus of competition law enforcement