The Danish competition authority has concluded that Coloplast Danmark misused its dominant position in the market for stoma products, particularly affecting the supply to municipalities. The authority's chair, Christian Schultz, stated that Coloplast's actions pressured competitors out of the market segment supplying stoma products to local governments.

In 2019, Coloplast entered a consortium with a wholesaler and subsequently leveraged its strong market position to charge significantly higher prices to competing wholesalers compared to those offered to municipalities through the consortium. This pricing strategy made it exceedingly difficult for rival wholesalers to secure contracts with municipalities, leading some to abandon the market entirely.

Coloplast's pricing varied across EU countries, with Denmark being one of the more expensive markets. As a result, Danish wholesalers found it more advantageous to parallel import products rather than purchase directly from Coloplast. By pushing competitors out of the market, Coloplast not only eliminated competition for its consortium but also stifled parallel imports of its stoma products at lower prices.

While Coloplast's behavior resulted in lower prices for municipalities in the short term, there was a significant risk of market concentration and weakened competition from parallel imports in the long run. This could lead to municipalities facing substantially higher prices for stoma products in the future.

In the summer of 2023, the competition authority intervened by approving a temporary commitment from Coloplast to alter its pricing behavior. Initially, the authority had competitive concerns, but it later found sufficient grounds to conclude that Coloplast had indeed abused its dominant position, violating competition law. The authority anticipates concluding the case with a fine against the company.

The competition authority has mandated Coloplast to refrain from engaging in abusive practices, specifically margin squeeze, in the sale of stoma products to wholesalers and municipalities in Denmark. The Competition and Consumer Authority will continue the case with the aim of imposing a fine.