The UK OFT imposes a £ 6.8 M fine for abusive bundling and margin squeeze (Healthcare at Home / Genzyme)

In March 2003 the OFT decided that Genzyme had infringed the UK Competition Act's Chapter II prohibition (the UK analogue of EC Article 82) by bundling its product with associated home care services, and by imposing a margin squeeze on competing firms [1]. Based on the case law and the OFT's published guidelines, this decision might appear at first glance to be a straightforward case of dominant firm abuse. But a closer analysis of the economic issues raises some interesting and as yet unanswered questions about the nature of dominant firms' obligations under competition law. The Facts Genzyme is a US-based global research-pharmaceutical company whose product portfolio includes Cerezyme, a drug used for the treatment of a rare medical condition known as Gaucher disease that affects

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  • RBB Economics (London)

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Derek Ridyard, The UK OFT imposes a £ 6.8 M fine for abusive bundling and margin squeeze (Healthcare at Home / Genzyme), 27 March 2003, e-Competitions Bulletin Pharma & Dominance, Art. N° 22142

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