In a judgement by the European Court of Justice (ECJ) on 31 May 2005, the Swedish monopoly on retail sales of medicinal preparations was found to be contrary to Community law.
In Sweden, under national law, retail trade in non-prescription and prescription medicinal preparations can be engaged in only by the State or by legal persons over which the State has a dominant influence. Since 1970, the Swedish government has entrusted retail trade in medicinal preparations to Apoteket (formerly known as Apoteksbolaget), a mainly non-for-profit company limited by shares, managed by politicians and State civil servants.
Between 30 May and 27 July 2001, the Swedish company Bringwell International AB, marketed 12 packages of Nicorette Plaster (patches) and of Nicorette Tuggummi (chewing gum). These products are regarded as non-prescription medicinal preparations under Swedish legislation. The Swedish authorities commenced criminal proceedings against the general manager of Bringwell International AB, Mr Hanner.
In his defence, Mr Hanner contended that Swedish national law was contrary to articles 28, 31 and 43 of the Treaty of the European Community, which deal with the existance of State monopolies.
Community law, although not requiring total abolition of State monopolies, requires them to be adjusted in such a way as to ensure that no discrimination exists between nationals of Member States.
A preliminary ruling was then forwarded from the Swedish court to the European Court of Justice, asking for clarification on the relation between national and European legislation in this regard.
The Court held that the system of selecting medicines operated by Apoteket was liable to place medicines from other Member States at a disadvantage compared with trade in Swedish medicines. As such the Swedish system was contrary to Community competition law.
Sweden will now have to ensure that the Apoteket system is freed up to avoid discrimination or opened up to competition, especially concerning the purchase of drugs.
However, Sweden’s retail business association interpreted the ECJ ruling as a "ban of the Apoteket monopoly" and some Swedish business have already announced that they would start selling drugs which do not require a prescription.
For more information see the court press release.
