EC officially requests Italy to change pharmacy ownership laws, Rome not seen as hurrying

On 27 November 2008, Italy was officially asked by the European Commission (EC) to change its laws governing the ownership of pharmacies.

Under Italy's present rules, pharmacists are banned from having more than one pharmacy and the number of pharmacies that can be owned by a group of pharmacists is restricted to four.

In addition these four pharmacies must be located in the same province and all of this is in breach of EU rules, the commission says.

The Commission alleges that Italy's rules are violating the freedom of establishment. It declared the present restrictions are "likely to prevent the establishment of pharmacies by operators from other member states or make it more difficult to them."

The Commission's official request in the form of a "reasoned opinion," gives Rome, time to reply. According to the European Union laws, the Commission will refer the matter to the Court of Justice if "no satisfactory reply is received within two months."

There was no immediate response from the Italian government to the EC's move.

John Chave, secretary general of Pharmaceutical Group of the European Union (PGEU) said the commission wants to see the full vertical and horizontal integration of pharmacies. "This is just one more in a series of cases. It is strictly unnecessary, because there are already similar cases against Germany and Portugal (which would set an EU-wide precedent)."

However, Chave said the Commission was "clearly trying to pile on the pressure." If, however, the Commission loses its case against Italian rules restricting ownership of pharmacies, due to be decided next year, this new case will be meaningless, he said.

The Commission spokesperson's service recalled earlier cases against Germany, Portugal, Austria, Spain and another one against Italy.

The Commission on June 28 took Italy to Court on a similar case but focussed "on account of restrictions imposed by its national legislation on the acquisition of holdings in and ownership of retail pharmacies." The Commission in June had said, "the Italian legal provisions ... are not consistent with ... the EC Treaty concerning freedom of establishment and free movement of capital within the EU."

Explaining the difference between the two cases, the European official said: "The former case was about retail pharmacies while in the present case, the interested parties have to open an office in Italy and there is this constraint of not more than four pharmacies and all need to be in the same province."

A similar action was taken against Austria and Spain on June 28 while Germany and Portugal were served notices on September 18, 2008. The commission official confirmed that the reply from the Member States has been received and is under consideration.