The Estonian Competition Authority issues its first merger prohibition taking into account both previous acquisitions and potential future acquisitions in the pharmacy services sector (Terve Pere Apteek / Saku Apteek)

On 8 May 2008, the Director General of the Estonian Competition Authority (hereinafter the “ECA”) adopted a decision on the prohibition of the proposed acquisition of control over OÜ Saku Apteek (hereinafter “Saku Apteek”) by Terve Pere Apteek OÜ (hereinafter “TPA”). Since this is the first decision prohibiting a concentration in Estonia, it is of great significance. However, the decision is quite controversial and raises several questions on the ECA's grounds to prohibit the concentration. According to the decision, both TPA and Saku Apteek are active in the market for pharmacy services in Tallinn (i.e. the capital of Estonia) and its surrounding