The Latvian competition authority has taken decisive action to prevent the concentration of pharmacies in various populated areas of Latvia, thereby promoting effective competition in the retail market for pharmaceutical products. This intervention was prompted by concerns over a potential monopoly situation where a single market participant could control up to 100% of pharmacies in certain locations.

In June 2022, the authority approved the acquisition of decisive influence by AB City over Olainfarm, but with strict conditions. These conditions required Olainfarm to divest its shares in Latvijas aptieka to an independent third party, ensuring that competition in the pharmacy sector would not be adversely affected by the merger.

In January of this year, Olainfarm reported to the authority that it had successfully divested its shares in Latvijas aptieka to SRV-pharmacy, a company with no ties to AB City or its affiliates. The authority confirmed that SRV-pharmacy and its owners were indeed independent, thus alleviating concerns about potential market dominance.

Following a thorough evaluation, the authority concluded that Olainfarm had complied with the imposed conditions, significantly reducing the risk of excessive influence by a single company in the pharmacy market. This decision is expected to enhance competition and ultimately benefit consumers.

AB City, the parent company of Repharm, is involved in various sectors including the production and sale of pharmaceuticals, cosmetics, dietary supplements, and healthcare services. Similarly, Olainfarm operates in the same sectors, emphasizing the importance of maintaining competitive dynamics in the market.