The ACCC has granted interim authorisation to enable eRx Script Exchange Pty Ltd (eRx) to amend its revenue sharing arrangement with IP MDS Pty Ltd (MDS) to facilitate the entry of a third provider of electronic pharmacy prescription exchange systems, and allow for the sharing of costs required to establish new and enhanced IT infrastructure.
Electronic script providers communicate electronic prescription information between doctors and pharmacies. Given the system used by the pharmacy may be different from the system used by the doctor, the systems need to be interoperable.
eRx has an existing authorisation granted in December 2020 which expires in June 2025. Under the existing authorisation, eRx and MDS are authorised to give effect to a revenue sharing agreement which facilitates the interoperability of their electronic pharmacy prescription exchange systems. eRx and MDS operate the only two electronic pharmacy prescription exchange systems that currently operate in Australia.
Interim authorisation will allow the parties to expand their revenue sharing agreement to facilitate the entry of a third electronic script provider, enhancing competition in the relevant markets.
Interim authorisation commences immediately and protects the revenue sharing arrangement for which authorisation is sought from legal action under the relevant provisions of the Competition and Consumer Act 2010 while the ACCC considers and evaluates the merits of the application. The ACCC may review the interim authorisation at any time and its interim authorisation decision should not be taken to be indicative of whether or not final authorisation will be granted.
The ACCC invites submissions on the application for authorisation by 25 January 2023.
Further information and a copy of the interim authorisation decision are available on the ACCC’s public register at: eRx Script Exchange Pty Ltd.