Authority to assess competition risks from pharmacy vending machines

Estonia’s Ministry of Economic Affairs and Communications wants the pharmacy vending-machine bill to include a post-implementation assessment by the Competition Authority, ERR reported. The measure is intended to reduce possible competition risks.

The Ministry of Justice and Digital Affairs has proposed changes to the bill, citing concerns about competition and data protection. The Ministry of Social Affairs and the Ministry of Economic Affairs and Communications say limits on the number of machines would address fears of a monopoly.

Mari Amos, head of the health-care organisation department at the Ministry of Social Affairs, said that in cities with at least 4,000 residents, each pharmacy would be allowed one machine. This is intended to prevent automated outlets from replacing physical pharmacies.

In smaller towns, each pharmacy operator could establish up to four pharmacy vending machines. They could not be placed directly outside another pharmacy or within one kilometre of an existing pharmacy, Amos said, to prevent an unfair advantage for operators with a full-service pharmacy and a machine-based outlet.

Rebeka Neitsov, head of public policy at the Ministry of Economic Affairs and Communications’ Accelerate Estonia programme, said the bill was not intended to restructure the existing pharmacy chain but to place vending machines where they were most needed. She said involving the Competition Authority in the post-implementation assessment would help reduce risks.

The operation of a pharmacy vending machine was tested several years ago in Rapla, including video consultations. The experience led to improvements in the machines’ development.

Amos said data protection would be ensured in the same way as at present. A pharmacy vending machine would have the status of a branch pharmacy, meaning that the same standards, restrictions and obligations would apply to it as to other pharmacies. Its software security solutions would also have to meet the same requirements as those used in a conventional physical pharmacy, with compliance checked by the State Agency of Medicines.

Video consultations at the machines would be conducted by pharmacists who already work in pharmacies. The machine operator would decide how their working hours were divided. Amos said pharmacists did not need to fear layoffs because Estonia continued to face a shortage of pharmacists.

The bill’s sponsors want to move quickly, Amos said, adding that it should be passed by the current composition of the Riigikogu before the elections.