Competition and Coronavirus

Competition and Coronavirus

I will not be so crass as to suggest that COVID-19 has competition law dimensions.  But competition authorities around the world are already using their powers to fight the threat.

The Polish Office of Competition and Consumer Protection is investigating whether suppliers of medical equipment have abused their dominant position by cutting off public healthcare access to surgical masks in order allocate supplies to other distribution channels at inflated prices.  The regulator has warned suppliers not to use fear and misinformation to artificially raise prices.

The UK Competition and Markets Authority says it will use its powers to enforce against rip-offs and misleading claims but stops short of price regulation of essential medical and food supplies. 

Meanwhile, Armenia’s competition authority has investigated over 90 pharmacies over shortages of masks and sanitisers. Although it has not found any evidence of unlawful practices, the state is working with counterparts internationally to try to ensure continuity of supplies is not distorted by suppliers trying to take advantage of the situation.

Iceland’s competition authority is focusing on the tourism sector and has issued a temporary exemption to allow the Confederation of Tourism to collaborate on ways to reduce customer cancellation, short of price coordination.

The policy tension cannot go unnoticed.  At a time of national emergency, this might require tougher enforcement of some laws and an easing of others.  We all need to stay vigilant to the developing situation and the implications for economic health.