23.04.2025 | Belgian competition authority
The Belgian Competition Authority (BCA) has sanctioned Johnson & Johnson Consumer NV, Boehringer Ingelheim SComm, and Haleon Belgium NV with a combined fine of EUR 11,249,280.48 due to their involvement in an anti-competitive category management arrangement that lasted more than 15 years.
Category management arrangements allow distributors to delegate the organization of product categories to suppliers. However, the arrangement known as the Space Management Project (SMAN) implemented by these companies had anti-competitive features, including the exclusion of competitors' products and preferential treatment for their own products in the design of planograms used for product placement in pharmacies.
The BCA determined that these practices aimed to control the visibility and placement of OTC medicines in a significant number of Belgian pharmacies, violating both Belgian and EU competition laws. The companies acknowledged their participation and accepted a settlement proposed by the BCA’s Investigation and Prosecution Service.
BCA Prosecutor General Damien Gerard emphasized that the suppliers collectively decided to manipulate shelf space to favor their products while disadvantaging competitors, which exceeded acceptable competition practices. The decision serves as a critical precedent regarding the limits of category management arrangements in Europe.
In terms of fines, Johnson & Johnson Consumer was fined EUR 4,771,584.00, Boehringer Ingelheim EUR 1,664,721.76, and Haleon EUR 4,812,974.72, with a 10% reduction for entering into a settlement. Haleon was sanctioned as the legal successor to companies that previously managed OTC activities in Belgium, and the arrangement was terminated before Haleon became independent.
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