The EU Court of Justice reverses the Commission decision regarding the legality of dual pricing arrangments between leading pharmaceutical undertaking and Spanish wholesalers (GlaxoSmithKline)

On 6 October 2009, the European Court of Justice (ECJ) issued its judgment in the long-running wrangle regarding the legality of GlaxoSmithKline's (GSK) dual pricing arrangements with Spanish pharmaceutical wholesalers. As a result of the judgment, the European Commission (Commission) will have to conduct a fresh examination as to whether GSK‘s sales conditions, which were judged to restrict competition, are to be exempted on the basis of a possible contribution to the promotion of technical progress. The ECJ's judgment affects all pharmaceutical companies that have similar arrangements in the EU. The ECJ's judgment is clear, sales terms that stipulate increased export prices in order to restrict parallel trade will infringe Article 81(1) and will only be permissible if they satisfy

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Authors

  • Morgan Lewis (London)
  • Cadwalader Wickersham & Taft (Brussels)

Quotation

Frances M. Murphy, Tom Bainbridge, The EU Court of Justice reverses the Commission decision regarding the legality of dual pricing arrangments between leading pharmaceutical undertaking and Spanish wholesalers (GlaxoSmithKline), 6 October 2009, e-Competitions Bulletin October 2009, Art. N° 33766

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