THE ACCC is seeking public feedback on a proposed court-enforceable undertaking by Sigma Healthcare Limited concerning its acquisition of Chemist Warehouse Group Holdings (PD breaking news).
Sigma, has offered the undertaking in response to competition concerns raised by the ACCC in Jun.
These concerns included potential harm to pharmacies supplied by Sigma and the possibility of Chemist Warehouse accessing competitors' data.
To address these issues, Sigma proposed several measures.
It agreed not to prevent franchisees who entered into contracts before Jan from terminating agreements for three years.
Sigma will also waive fees if these franchisees choose to leave.
Additionally, restrictions will be placed on Sigma's collection and use of patient data for three years.
Sigma has further committed to remaining a pharmaceutical wholesaler under the Commonwealth Government's Community Service Obligation (CSO) for at least five years, ensuring consistent service standards, the statement added.
ACCC Chair Gina Cass-Gottlieb said, "while the ACCC is publicly consulting on this undertaking, this should not be interpreted to mean that this or any other form of undertaking will ultimately be accepted by the ACCC".
The regulatory body is continuing to assess the acquisition's impact on competition impact.
The ACCC invites submissions on the proposed undertaking by 14 Oct, and parties can contact the ACCC via SigmaCWG@accc.gov.au. JG
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