ANKARA — The Turkish Competition Authority has launched an investigation into the economic entity formed by Avixa İlaç Sanayi ve Ticaret AŞ and Avigem İlaç Sanayi ve Ticaret Ltd. Şti., both active in the pharmaceutical industry. The probe centers on allegations that the companies violated Turkey’s Competition Protection Law by restricting market entry and causing public harm through anticompetitive practices in the segment of dual-active ingredient nasal sprays.
According to an official statement published on the Authority’s website, the investigation was initiated on suspicions that the companies prevented the market entry of competitors and withheld one of the two jointly marketed nasal sprays from the market, leading to increased public reimbursement costs.
Alleged Market Manipulation and Public Harm
The statement highlights that two nasal spray products with identical content and formulations were released by the same entity. Despite one product being subject to a higher discount under the Social Security Institution (SGK) reimbursement program, it maintained less than 1% market share, rendering it excluded from the average price band calculation.
This has raised concerns that the companies may have deliberately kept the lower-priced product off the market to artificially maintain higher reimbursement levels for the alternative product, while also hindering new competitors from entering the market by forcing them to offer lower prices to compete.
Abuse of Dominance Under Scrutiny
The Authority stated that it is investigating whether these practices amount to abuse of dominant position through exploitative or exclusionary conduct. It also noted that such conduct may have led to increased public healthcare expenditures, emphasizing that it closely monitors similar cases where joint marketing agreements result in the withholding of lower-priced drugs, potentially harming public interest.
No Final Ruling Yet
The Authority stressed that the launch of an investigation does not imply guilt or the imposition of penalties. The decision to proceed simply indicates that the matter warrants further examination under competition law.
The outcome of the investigation will determine whether Avixa and Avigem breached the law and whether any sanctions will be imposed.
Source: Anadolu Ajansı/ Prepared by: İlayda Gök