Two major pharmaceutical wholesalers, AD D-r Panovski and Pharma Trade DOOEL Skopje, have been found guilty of forming a cartel agreement during a 2016 public procurement procedure. The Higher Administrative Court upheld the decision of the Commission for Protection of Competition, confirming the violation.

The cartel involved a public procurement announced by the Ministry of Health of the Republic of Macedonia. The two wholesalers allegedly colluded on the selling prices of medicines, specifically insulin, glucagon, insulin needles and strips for measuring sugar, and insulin pumps with consumables.

The Commission for Protection of Competition determined that the companies intentionally replaced free competition with a prohibited agreement to gain illegal financial benefits. Their investigation considered both domestic legislation and European Union case law.

The Commission imposed fines on AD D-r Panovski in the amount of EUR 1,061,000 and Pharma Trade DOOEL in the amount of EUR 721,000. The fines are directly related to the damage inflicted on the state budget.

The Commission for Protection of Competition will submit a report to the Financial Police Administration and the Public Prosecutor’s Office. Further action is expected in the appropriate criminal procedure.