Investigation into the status of the Health Service Executive
October 10, 2008
Outcome of investigation
The Competition Authority (“the Authority”) conducted an investigation of an alleged abuse of a dominant position by the Health Service Executive (HSE) while acting as the sole purchaser of pharmacy services from retail pharmacies.
The Authority issued an enforcement decision giving its view that, for the purposes of competition law, the HSE was not an ‘undertaking’ when it engages in various activities relating to the administration of various drugs schemes. The HSE therefore could not infringe competition law in that context.
Accordingly, the Authority determined that it would take no further action in respect of the complaints it has received in this context.
Outline of case
For the purposes of Irish competition law, an ‘undertaking’ is any individual, body corporate or unincorporated body of persons engaged for gain in the provision, supply or distribution of goods or the provision of a service.
The Authority had received several complaints alleging that the HSE was violating competition law. For instance, it was alleged that the HSE was abusing a dominant position as the sole purchaser of pharmacy services from retail pharmacies operating under various drugs schemes, such as the General Medical Scheme (GMS) and the Drugs Payment Scheme (DPS).
As part of the investigation of the case the Authority conducted a detailed analysis of the issues including whether the HSE should be considered an undertaking, and whether it could indeed breach competition law in this instance.
As a result of its investigation the Authority formed the view that, for the purposes of competition law, the HSE was not an ‘undertaking’ when it engages in various activities relating to the administration of various drugs schemes. The HSE therefore could not infringe competition law in that context.
Accordingly, the Authority closed the investigation and issued a decision notice setting out its views.
To learn more on this case read our Enforcement Decision on Alleged anticompetitive conduct by the Health Service Executive relating to the administration of the Community Drugs Schemes (pdf).
Relevant provision
- Section 5 of the Competition Act 2002
- Article 102 of the Treaty on the Functioning of the European Union
