Coloplast appeals € 910,080 fine in Italy

The Competition Authority in Rome (Autorità Garante della Concorrenza e del Mercato) today has fined Coloplast € 910,080 for restrictive behaviour in relation to a tender from local health authorities in Ferrara in 2003. Coloplast has decided to appeal against the ruling.

 

The Competition authority in Rome (Autorità Garante della Concorrenza e del Mercato) today has fined Coloplast € 910,080 for restrictive behaviour in relation to a tender from local health authorities in Ferrara in 2003. Coloplast has decided to appeal against the ruling.

The case first became public when the local competition authorities carried out a dawn raid at Coloplasts offices in Bologna on 25 July 2006. Then the Italian competition authorities acted on a claim from the local health authorities in Ferrara stating that the reason why Coloplast did not bid on a tender for local supply of ostomy products in 2003 could be due to restrictive behaviour. The four main providers of ostomy products in Italy all chose not to participate in the tender.

The fact is, that Coloplast chose not to bid on the tender because it would prevent Italian citizens the freedom of choice of ostomy appliances, which they are entitled to according to Italian law (Nomeclatore tariffario delle protesi - DM 332/99).

The tender was criticized by the national and local Ostomy association, who feared their members would no longer be allowed to use the ostomy appliances that would make them able to live a normal life with jobs, friends and family. Different people need different appliances, and this is the main reason why tenders in Italy usually allow more than one supplier of the same type of ostomy product.

In early 2005 the tender was withdrawn, and the authorities in Ferrara invited the tender manager to issue a new bid that could allow the supply of all the brands. The new tender was issued and finalized in 2005. This tender is still operational and ensures the citizens the freedom of choice when it comes to ostomy appliances.

On that basis, and fact that the competition authorities have acknowledged there were no meetings between suppliers with the purpose of discussing the tender, Coloplast will immediately appeal today's ruling. Until the result of this appeal is made public Coloplast will have no further comments.