Calls for competition inquiry to include pharmaceuticals rejected
Calls to extend
a competition inquiry beyond the market for groceries to include, for example, pharmaceuticals, have been rejected by the Competition Commission.
A statement of issues (PDF 60K) released by the commission last week
says that the commission will not extend its investigation beyond the
defined
remit
of groceries, which means food, pet foods, drinks, cleaning products,
toiletries and household goods.
However, the statement adds that the Enterprise Act 2002 gives the commission
power to identify features that affect competition in any market in which
grocery suppliers operate. But it can only take account of matters such
as the mix of shops on high streets and its impact on local communities
if they adversely affect competition by leading to higher prices, less
choice, lower quality of available products or less innovation.
In this context, the issues statement says: “We will consider … whether the activities of grocery retailers affect competition in
markets for non-grocery items, such as [pharmaceuticals].”
Inquiry chairman Peter Freeman said: “We know there are many issues
of more general public concern surrounding the grocery market. We will
listen to evidence on these, but our concern must be with their impact
on competition; we hope those who provide evidence to us will focus on
that.”
Lincolnshire pharmacist Noel Baumber was one of those who wanted the
inquiry to be wider. |
The
Pharmaceutical Journal
Acrobat
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