Online healthcare companies fined for anti-competitive agreement on advertising digital health services

In 2020, Kry agreed with each of Doktor.se, Min Doktor, and Doktor24, that their advertisement should not appear when users searched for Kry on Google – and vice versa. All four companies offer digital primary healthcare services to private individuals in Sweden and are competitors.

“When companies collaborate in a way that restricts competition, they are in breach of competition law. Such behaviour is prohibited and can result in significant fines,” says Marie Östman, Director General of the Swedish Competition Authority.

Most users search for information online using the search engine Google Search. Appearing with advertisement on Google Search is therefore crucial for companies offering digital services, as it allows them to reach consumers who are actively seeking such services – in this case, digital healthcare.

Through keyword advertising, companies can purchase advertising space on Google Search. To ensure that an advert appears when someone searches for a competitor’s brand name, companies bid on keywords that correspond to their competitors’ brand names. When a user searches for the competitor’s name, the bidding company's advert is also displayed.

Under the agreements made by the online healthcare providers, they agreed not to advertise on Google Search targeting consumers who searched for the other party’s brand name. This meant that consumers were deprived of gaining knowledge of alternatives to the company they had searched for. As a result of the agreements, Doktor.se, Min Doktor and Doktor24 did not compete with Kry for potential customers who searched for Kry – and vice versa.

“Agreements between companies that limit consumers’ ability to become aware of competing providers through internet searches negatively affect competition and harm consumers,” says Marie Östman.

According to the Swedish Competition Authority’s decision, Doktor.se is to pay SEK 15 million, Min Doktor SEK 6.5 million, and Doktor24 SEK 5 million in administrative fines for breaching the prohibition on anti-competitive cooperation. Kry has been granted immunity from fines and thus will not have to pay an administrative fine, as the company voluntarily notified the illegal anti-competitive agreements to the Swedish Competition Authority.

“The leniency programme is an important part of our supervisory activities and helps uncover illegal cooperation. The company who is the first to inform the Swedish Competition Authority of illegal anti-competitive agreements, may be given full or partial immunity from fines,” says Marie Östman.

The decisions can be appealed to the Patent and Market Court.

Hanna Lekås, Head of Unit, +46 08-700 15 71, hanna.lekas@kkv.se
Marie Strömberg Lindvall, Press Officer, +46 08-700 15  92, Marie.StrombergLindvall@kkv.se