The Luxembourg Competition Council (“Council”) recently published a sector enquiry report onthe pharmacy market. In this report, the Council identifies a number of problems and potential solutions to address them.
Insufficient market coverage
The Council found that contrary to the neighbouring countries, the density of pharmacies in Luxembourg is very low. According to data gathered for the report, 25 additional pharmacies are needed to satisfy the demand of the population. The opening of a new pharmacy is subject to government authorisation and the conditions to obtain a concession are strict. For example, one has to be at least 50 years of age to obtain a first license. In addition, the government created only three new licenses in 2021. According to the Council, the concessions regime could be contrary to Article 11(6) of the Constitution governing the freedom of commerce and industry.
The high price of drugs in Luxembourg