In recent weeks, the Hungarian Competition Authority has launched two investigations in the market for over-the-counter medicines. The proceedings aim to determine whether the conduct of market participants qualifies as anti-competitive and whether this has – among other factors - contributed to the rapid price increases of non-prescription medicines.
According to data from the Hungarian Central Statistical Office, prices of over-the-counter medicines in Hungary increased significantly between 2020 and 2025. In case of certain popular products - such as cold remedies, nasal sprays and painkillers - the price increase amounts to as much as 40–50%. It is therefore not surprising that the Hungarian Competition Authority has also taken note of the sector and launched two targeted investigations in February this year to assess potential competition law infringements.
Shelf placement as a potential anti-competitive tool
Several studies clearly demonstrate that when we enter a pharmacy (or any other store), we are far more likely to purchase products placed at eye level. For this reason, shelf placement (i.e. the arrangement of goods on store shelves) is a highly significant marketing and sales promotion tool. Moreover, a less attentive consumer may be more inclined to purchase a product that is easier to reach on the shelf even at a higher price, rather than choosing a lower-priced alternative that is less prominently displayed in the store. Consequently, shelf placement and the arrangement of products on store shelves may also have an upward effect on prices.
In one of the investigations launched in February, the GVH seeks to examine whether the companies under investigation - including pharmacies belonging to the interest sphere of BENU Magyarország Zrt. and Phoenix Pharma Zrt., which belongs to the same corporate group - organize their shelf placement practices in full compliance with competition law rules. The investigation initiated by the authority focuses on the market for over-the-counter systemic analgesics.
According to the GVH’s suspicion, the companies under investigation, together with several pharmaceutical manufacturers and distributors - namely Sanofi‑Aventis Zrt., Opella Healthcare Commercial Kft. and Haleon Hungary Kft. - may have engaged in market conduct that could exclude products offered by other manufacturers from pharmacy retail sales, including potentially cheaper medicines with the same active ingredients. The likely focus of the Competition Authority’s investigation is to examine agreements that grant preferential treatment to these pharmaceutical manufacturers or distributors in terms of the placement of their products on pharmacy shelves - for example, the most visible and most accessible shelf spaces being reserved exclusively for “favoured” manufacturers. If an infringement is proven - which could result in reduced market competition and increased pharmacy prices -, the parties concerned may face substantial fines.
Suspicion of dominance in more than one hundred municipalities
At the same time, the Competition Authority is also examining the market conduct of Phoenix Pharma Zrt. and BENU Magyarország Zrt., as it suspects that these companies may be abusing a dominant market position. According to GVH’s information, these companies are present as the sole market participants in more than one hundred municipalities and therefore are likely to hold a dominant position in those local markets.
The fact that a company is the sole participant in a market or otherwise holds a dominant position does not constitute an infringement. The Competition Authority is examining whether the two companies mentioned above have abused their dominant position. Such abuse may take the form of charging unjustifiably high prices, applying discriminatory purchasing or sales conditions, or excluding other wholesalers from the market.
The significance of this investigation has increased by the fact that the Competition Authority has examined relatively few cases of dominance in recent years. As a result, the findings made in the current proceedings will certainly be considered unique.
What can be expected in the pharmaceutical market?
The current investigations of GVH are, in many respects, not without precedent. In recent years, the Competition Authority has also launched several consumer protection proceedings related to the advertising of medicines. Within this framework, the GVH imposed a competition supervision fine of HUF 105 million on one of the market players also involved in the above-mentioned proceedings, Opella Healthcare Commercial Kft., on the grounds that the manufacturer advertised its product “Normaflore” in a manner contrary to its instructions for use.
The market situation is further shaped by an agreement concluded in July last year, based on consultations between the government and industry stakeholders, under which pharmaceutical manufacturers, wholesalers and pharmacies introduced a voluntary price and margin cap on 34 high-turnover over-the-counter products.
The outcome of the current investigations will have a significant impact on the future conduct of wholesalers, pharmacy chains and manufacturers operating in the market for over-the-counter medicines. Once the facts have been clarified, the investigations will substantially influence shelf placement practices and the functioning of local markets.