The Belgian Competition Authority (BCA) has fined three pharmaceutical companies a total of €11.249 million for engaging in an anti-competitive category management agreement that lasted over 15 years.
The case involves Johnson & Johnson Consumer (now Kenvue), Boehringer Ingelheim, and Haleon.
The agreement concerned over-the-counter (OTC) medicines, which do not require a prescription. While such agreements are not banned, this one restricted competition by influencing product placement, promotion, and selection in stores.
In practice, the agreement allowed these pharma companies to control the placement of OTC medicines on shelves in numerous Belgian pharmacies.
"Several major OTC firms colluded to enhance their shelf visibility in pharmacies by securing prime shelf space, disadvantaging and even excluding products from competitors," said auditor-general Damien Gerard. "This practice is a form of category management that conflicts with competition law."
The BCA took into account the limited precedents regarding the boundaries competition rules set for category management in Europe. This decision serves as a significant example of what can go wrong.
OTC products include non-prescription medicines and care items such as creams, painkillers, vitamins, and cold remedies.
The three companies admitted their involvement and agreed to a settlement proposed by the authority’s auditor.
Haleon, a UK-based firm distributing products like Sensodyne and Voltaren, was fined €4.813 million. This penalty reflects its liability as the successor to other companies’ OTC activities in Belgium before Haleon’s establishment as an independent entity in 2022 after GSK’s consumer healthcare division spun off.
Johnson & Johnson Consumer, now called Kenvue following its separation from Johnson & Johnson in 2023, will pay €4.772 million, distributing products like Listerine, Imodium, and Motilium in Belgium. Boehringer Ingelheim’s fine amounts to €1.665 million.
These amounts reflect a 10% legal discount for accepting the settlement.
