Restrictions on distribution agreements in the pharmaceutical sector from the perspective of competition law

In Türkiye, the production, marketing, sale and distribution of medicines are subject to regulations. Distribution is a commercial activity that ensures the delivery of products to end-users following the manufacturing process. The pharmaceuticals are distributed by independent distributors known as pharmaceutical warehouses to pharmacies or through tenders to public/private healthcare institutions based on distribution agreements. Although the parties to the contract, its subject and the results of the commercial activity are similar between these two channels, the legal qualities of the contracts are different from each other. Distribution agreements are considered "vertical agreements" in terms of competition law because they contain provisions regarding purchase-sale or resale between pharmaceutical companies that are providers of a product market and pharmaceutical warehouses operating at the distribution level. Consequently, distribution agreements are subject to restrictions outlined in Article 4 of the Competition Law. However, these agreements are also examined for individual exemption and especially group exemption regulations based on the benefits they bring. In this study, we examined the distribution agreements between pharmaceutical companies and pharmaceutical warehouses regarding the supply of drugs to independent pharmacies in the first section. We included our evaluations regarding the legal nature of this contract, taking into account its characteristics. Additionally, we comparatively analyzed contracts in the tender channel, commonly encountered in decisions of the Competition Board. In the second section, we focused on the restrictions arising from competition law limitations on distribution agreements and analyzed these contracts in the light of exemption regulations based on decisions of the Competition Board.