WIREDGOV

The OFT today issued a Statement of Objections to Hamsard 3149 Limited (Hamsard), and its subsidiaries Quantum Pharmaceutical Limited and Total Medication Management Services Limited (trading as Tomms Pharmacy) and to Celesio AG and its subsidiary Lloyds Pharmacy Limited (Lloyds), following its investigation into the supply of prescription medicines to care homes throughout England.

Issuing the Statement of Objections is a necessary procedural step in the case.

In December 2013, Hamsard agreed to pay a reduced £387,856 fine reflecting its admission and agreement to co-operate under the OFT's leniency policy and in light of settlement. The matter was brought to the OFT's attention by Lloyds, under the OFT's leniency policy. Under the policy, a company which is the first to report its participation in a cartel may qualify for immunity from fines. Provided it continues to co-operate with the OFT, Lloyds is not expected to pay a fine. See press release Pharmaceutical group agrees to pay over £380k in care home medicine cartel (12 December 2013).

The Competition Act 1998 requires the OFT to issue its proposed findings in a Statement of Objections to parties, and to give them an opportunity to make representations, before it can issue a final decision. That requirement applies even where there is a settlement.

NOTES

1. A Statement of Objections gives notice of a proposed infringement decision under the Competition Act 1998 to the parties involved. It sets out the facts on which the OFT relies, the objections raised by the OFT, the action(s) it proposes to take and the reasons for it. The parties then have the opportunity to make written and oral representations in response to the case set out by the OFT. Any such representations will be considered by the OFT before any final decision is made. 
2. The Statement of Objections will not be published. In accordance with the OFT's guidance on involving third parties in Competition Act investigations, any person who wishes to comment on the OFT's provisional findings, and who is in a position materially to assist the OFT in testing its factual, legal or economic arguments, may request a non-confidential version of the Statement of Objections by contacting the OFT no later than 7 February 2014. Where a request is made by a third party which has not previously been involved in the investigation, it must submit representations to the OFT as to why it considers it is in such a position materially to assist the OFT. 
3. The Chapter I prohibition of the Competition Act 1998 prohibits, among other things, agreements or concerted practices between undertakings that have the object or effect of preventing, restricting or distorting competition in the UK or a part of it and which may affect trade in the UK or a part of it.
4. For more information see the case page.