Turkish Competition Authority's Johnson And Johnson Decision Is Annulled: Green Light To Selective Distribution In Pharmaceuticals

On 3 September 2020, to the Turkish Competition Authority (the “TCA”) rejected Johnson and Johnson Sıhhi Malzeme Sanayi ve Ticaret Limited Şirketi's (“JJ”) exemption application relating to the “Pharmaceutical Warehouse Sales Agreement” (the “Agreement”) to be concluded between JJ and nine pharmaceutical warehouses for the distribution of four specific drugs used for the treatment of serious illnesses. The Agreement envisages a quantitative selective distribution system for these drugs, limits the number of authorized warehouses to nine and prohibits the authorized warehouses to sell, provide or trade these four drugs to parties other than authorized warehouses. JJ asked the TCA to determine that the Agreement benefits from block exemption and if not to grant an individual exemption. The TCA decided that the selective distribution system envisaged by JJ neither benefit from the block exemption nor meet the criteria for granting an individual exemption.