The Maltese Competition Authority published the final report on its Sector Inquiry on the supply of Infant Milk Formula in the Public Health Sector and the impact of that supply on the Private Retail Market.

Today, the Office for Competition has published the final report on its sector inquiry on the supply of infant milk formula in the public health sector and the impact of that supply on the private retail markets. The primary objective of the sector inquiry was to assess whether the procurement process adopted by the Central Procurement and Supplies Unit (CPSU) at Mater Dei Hospital is distorting competition in the private retail markets for the focal product and if so, exercise its advocacy role and suggest recommendations to CPSU for the betterment and well-functioning of markets.

The outcome of the inquiry confirms that the policy of having a single supplier servicing Mater Dei Hospital is creating unnecessary risks of security of supply, restricting consumer choice for parents and creating significant barriers to entry and expansion in the secondary markets. The Office for Competition opines that the current procurement process adopted by the CPSU is distorting competition in the private retail markets, possibly leading to foreclosure effects in an already highly concentrated market. Following a public consultation process, the Office for Competition is recommending actions to the CPSU to better its procurement process for the well-functioning of the private retail market.

The report can be accessed from here.