Lloyds Pharmacy, which is hoping to run a new dispensary at Barton surgery, Dawlish, Devon, has rejected allegations that it has monopolised business in the town.
The company already has three outlets in Dawlish; the only other pharmacy in the town is run by Boots the Chemists.
Dawlish town council says that there should be a choice of pharmacies available and that it is not sensible for one company to dominate. It is writing to the health authority to oppose Lloyds's bid to run the new pharmacy.
Mr Paul Brooks (area manager, Lloyds) said that when the new dispensary opened one of the three existing premises would close. He said that the company's purchase last year of Brace Chemists in Dawlish was a legitimate commercial operation. "The business was up for sale and we bought it. Any of our competitors could have done the same."