The Bulgarian Commission for Protection of Competition (CPC) has opened an in-depth investigation into Phoenix Bulgaria EOOD’s proposed acquisition of control over 47 Medea pharmacies. The transaction involves both the acquisition of lease rights for the pharmacies and the transfer of ownership of certain tangible and intangible assets used in their operations.
According to the CPC, the decision to proceed with an in-depth review reflects the social sensitivity and public importance of the pharmaceutical sector, where any concentration may significantly affect competition and public access to medicinal products.
During the preliminary (accelerated) phase of the review, the authority found that Phoenix Pharma EOOD—part of the international Phoenix Group—is among the four largest wholesale distributors of medicinal products in Bulgaria. The company also holds exclusive distribution rights for specific pharmaceuticals in the country and provides pharmacy management software used by a substantial number of retail outlets.
The CPC’s in-depth investigation aims to determine whether the creation of a vertically integrated structure—expanding Phoenix’s retail network from 4 to 51 pharmacies—could confer a competitive advantage over other market participants. Such an advantage could materialize, for instance, in situations of limited product availability, where Phoenix might prioritize supplies to its own pharmacies to the detriment of independent retailers. Other potential concerns include possible discriminatory supply conditions, preferential pricing, or access to sensitive commercial information via the software operated by Phoenix.
In response to the concerns raised by competing undertakings and sectoral regulators, the CPC will closely examine the commercial relationships between Phoenix Pharma EOOD and both its owned and affiliated pharmacies. The inquiry will also encompass Phoenix’s dealings with third-party retailers, including participants in the BETTY partnership program. Key areas of scrutiny will include negotiation practices, the granting of trade discounts, delivery timelines, payment terms, and the treatment of products distributed exclusively by Phoenix Pharma.
The in-depth investigation is a critical stage in the authority’s assessment of whether the proposed transaction could restrict effective competition in the Bulgarian pharmaceutical retail and wholesale markets or adversely affect access to medicinal products for consumers.
