Anti-Doctor Now Bill Passes Welfare Committee; Platform-Pharmacist Confrontation Intensifies

The amendment to the Pharmaceutical Affairs Act, nicknamed the 'DoctorNow Prevention Act,' which prohibits telemedicine platforms from being licensed for pharmaceutical wholesale, has passed the National Assembly's Health and Welfare Committee, leading to a fierce clash between the platform industry and the pharmacists' association. This bill primarily restricts telemedicine platforms from operating pharmaceutical wholesale businesses. Immediately after the bill's passage, DoctorNow emphasized in a statement that its actions constitute 'legal innovation' for patient convenience. They argued that they have legitimately acquired and shared pharmacy inventory information through licensed wholesale businesses to resolve the 'pharmacy hunt' problem faced by telemedicine patients. Regarding the allegations of illegal kickbacks and preferential search exposure raised by Representative Kim Yoon, DoctorNow dismissed them, stating they only receive payment for pharmaceuticals and that preferential exposure of specific pharmacies is impossible with their location-based map system. Furthermore, they urged for policy consistency, arguing that restricting matters already regulatable by existing laws through separate legislation harms the legal system's consistency and predictability, especially since a former Minister of Health and Welfare had previously stated that their wholesale method did not constitute unfair trade. On the other hand, the Korean Pharmacists Association welcomed the bill's passage, stating, "The amendment to the platform kickback prohibition law is a natural consequence of the numerous illegal practices exhibited by private platforms like DoctorNow." The association stated that over the past six years, they have continuously raised issues regarding private platforms' indiscriminate pursuit of profit and illegal activities, criticizing practices such as pressuring pharmacies using market dominance, forcing the sale of pharmaceuticals handled by their own wholesale business, and illegal channeling of prescriptions. They emphasized that this amendment is a minimum measure to establish order in pharmaceutical distribution and prevent pharmacies from becoming dependent on platforms, by applying existing regulations, such as the prohibition of collusion and illegal kickbacks, to platforms as well. The platform industry expresses concern that this amendment will restrict the convenience for telemedicine patients to dispense prescribed medications and cause patients the inconvenience of having to check inventory at each pharmacy themselves. Some also point out that this could become a 'second TADA ban,' restricting consumer choice. The government stated that if the bill passes the plenary session, it plans to induce platforms that previously operated wholesale businesses to cease operations after a transitional period. With the bill awaiting passage in the plenary session, the debate between the two sides is expected to intensify further in the upcoming legislative process.