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Meds reports Apoteket AB: Demands review of the state's e-commerce

Björn Thorngren, CEO
Takes the state to the Swedish Competition Authority.

The CEO of the online pharmacy Meds, Björn Thorngren, criticizes the state ownership of Apoteket AB. He believes that the state distorts competition in the pharmacy market through subsidies that exclude actors within e-commerce. Now, the online pharmacy is taking the matter further and demanding that the Swedish Competition Authority review the state competitor's presence online. This is reported by Tidningen Näringslivet.

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A debated topic is the rural subsidy which exists to ensure access to prescription drugs. The regulatory system makes it impossible for online operators to participate in the funds, despite the fact that online pharmacies deliver to the same locations. The cost of home delivery in rural areas affects e-commerce, particularly after new requirements for personal handover.

At the same time, the CEO of Apoteket has recently proposed targeted investments for pharmacies in vulnerable areas in cities, an attitude that Björn Thorngren sees as problematic special solutions. He points out that physical stores are prioritized at the expense of e-commerce, a sales channel he believes will carry Sweden's pharmaceutical supply in the future.

If it is a well-functioning deregulated market, we have no need for a state actor, says Björn Thorngren to TN.

Notification to Authority

The pharmacy industry faces challenges with profitability. The compensation provided for prescription drugs covers exactly the costs, which means that the actors rely on the sale of other goods.

Currently, two out of four physical chains and four out of six e-pharmacies are operating at a loss. Meds believes that the state should sell Apoteket AB, like the sale of Svensk Bilprovning, and has submitted a letter to the Swedish Competition Authority.

The authority is urged there to review Apoteket AB's operations within e-commerce. The state-owned company has announced that it declines to comment on the ongoing supervisory case.

No private actor can sustainably meet a competitor who does not need to achieve profitability. This unduly affects private companies' opportunities to conduct business in the market, writes Meds in the letter.

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