The over-the-counter drug market is under fire from the competition authority

According to data from the Hungarian Central Statistical Office, the prices of over-the-counter medicines in Hungary increased significantly between 2020 and 2025. In the case of some popular products – such as cold remedies, nasal sprays and painkillers – the price increase reached 40-50%. It is not surprising that the Hungarian Competition Authority has also taken notice of the area and launched two special investigations in February this year to assess possible competition violations. 

The shelf image as a possible anti-competitive tool

Sill Abigél

Several studies clearly prove that when we go to a pharmacy (or any other store), we are much more likely to buy products that are placed at eye level. Therefore, the shelf image (i.e. the arrangement of the offered products on the store shelf) is a very serious marketing and sales promotion tool. Moreover, a less thorough buyer is more inclined to buy a product that is more easily accessible on the shelf, even at a higher price, than its lower-priced alternative that is otherwise hidden further away in the store. Therefore, the shelf layout and the order in which goods are placed on store shelves can also have a price-increasing effect. 

“In one of the investigations launched in February, the GVH intends to map out whether the enterprises under investigation – such as the pharmacies belonging to the scope of interest of BENU Magyarország Zrt. and Phoenix Pharma Zrt., which belongs to the same group of enterprises – develop their shelf layouts with maximum consideration of competition law rules. The investigation launched by the authority concerns the so-called over-the-counter medicines. focuses on the market of systemic painkillers”

– explains Abigél Sill, group leader lawyer. 

According to the GVH’s suspicion, the companies under investigation, as well as several pharmaceutical manufacturers and – distributors (Sanofi-Aventis Zrt., Opella Healthcare Commercial Kft., Haleon Hungary Kft.) may exhibit market behavior that may displace products offered by other manufacturers – possibly at a lower price, with the same active ingredient – ​​from retail pharmacy sales. The Competition Authority’s investigation is likely to focus on agreements that provide these pharmaceutical manufacturers or distributors with preference for placing their products on pharmacy shelves, e.g. the most visible and most accessible shelf space may be given only to the “benefitted” manufacturers. If the violation is proven – which results in a decrease in market competition and an increase in pharmacy prices – then the affected participants can expect high fines.