RISE OF COMPETITION INTERVENTIONISM IN EXCESSIVE PRICING OF PHARMACEUTICAL PRODUCTS: INSIGHTS FOR INDIA
Volume 3Issue III Year 2024
Dr. Kavitha Chalakkal
Assistant Professor, Inter-University Centre for IPR Studies, CUSAT.
kavithachalakkal@cusat.ac.in
Smruthy N Pradeep
PhD Research Scholar, Inter-University Centre for IPR Studies, CUSAT
smruthynpradeep@gmail.com
Table of Contents
Dr. Kavitha Chalakkal
Assistant Professor, Inter-University Centre for IPR Studies, CUSAT.
kavithachalakkal@cusat.ac.in
Smruthy N Pradeep
PhD Research Scholar, Inter-University Centre for IPR Studies, CUSAT
smruthynpradeep@gmail.com
Excessive prices- unfair prices- competition law- pharmaceutical pricing- interventionism
1. Flynn Pharma Ltd. & Flynn Pharma (Holdings) Ltd. v. Competition & Mkts. Auth., [2020] CAT 11.
2. Verizon Communications Inc v Law Offices of Curtis v Trinko, LLP, (2004).
3. Frederick M. Abbott, Prosecuting Excessive Pricing of Pharmaceuticals under Competition Law: Evolutionary Development, 24 Colum. Sci. & Tech. L. Rev. (2023).
4. Prerna Raturi, Excessive Drug Pricing in Indian Pharmaceutical Market: Exploitative Practice or Aggressive Competition Conduct, 3 GNLU Journal of Law & Economics (2021).
5. Tim van Helfteren, Excessive Pricing in Pharmaceutical Markets: A Review of the Legal Test for Competition Authorities, 42 European Competition Law Review (2021) - from 2018 to 2022, compared to the nine years prior, there has been a noticeable increase in the average number of pharmaceutical antitrust decisions made per year by European competition authorities- See European Union, Update on Competition Enforcement in the Pharmaceutical Sector (2018-2022), (2024); Adam Acosta et al., United States: Pharmaceutical Antitrust, (2021).
6. Adam Acosta et al., United States: Pharmaceutical Antitrust, (2021).
7. Diletta Danieli, Excessive Pricing in the Pharmaceutical industry: Adding Another String to the Bow of EU Competition Law, 16 Health Economics, Policy and Law 64 (2020).
8. Id.
9. Antitrust: Commission opens formal investigation into Aspen Pharmas pricing practices for cancer medicines, European Commission (2017)
10. Omar Vsquez Duque, No Alarms and Many Surprises: Salience as a Basis for Excessive Pricing Intervention in an Antitrust Context, 16 J. Competition L. & Econ. 552 (2020).
11. Id.
12. Giorgio Monti & Alexandre de Streel, Exploitative Abuses: The Scope and the Limits of Article 102 TFEU, (2023).
13. Anca Daniela Chirita, Undistorted, Un(fair) Competition, Consumer Welfare and the Interpretation of Article 102 TFEU, 33 World Competition: L. & Econ. Rev. 417 (2010).
14. Margherita Colangelo & Claudia Desogus, Antitrust Scrutiny of Excessive Prices in the Pharmaceutical Sector: A Comparative Study of the Italian and UK Experiences, 41 World Competition: L. & Econ. Rev. 225 (2018).
15. Incremento Prezzi Farmaci/Aspen, (Italian Competition Authority 2016).
16. Vittorio Cerulli Irelli & Benedetta Marsicola, The Aspen case. Anti-competitive behaviour in price negotiations with AIFA., Lexology (2016).
17. CMA decision on Pfizer/Flynn (Competition and Markets Authority 2016).
18. Competition and Markets Authority, CMA fines Pfizer and Flynn 90 million for drug price hike to NHS, GOV.UK (2016).
19. Napp Pharmaceutical Holdings Limited and Subsidiaries v Director General of Fair Trading, 1 (CAT 2002).
20. John Davies & Jorge Padilla, Another Look at the Economics of the UK CMAs Phenytoin Case, in Excessive Pricing and Competition Law Enforcement 71 (Yannis Katsoulacos & Frdric Jenny eds., 2018).
21. Behrang Kianzad, Towards Fair Pricing of Medicines? Lessons from the European Commissions Aspen Decision, 6 European Health & Pharmaceutical Law 3 (2022).
22. Jaume Puig-Junoy, Impact of European Pharmaceutical Price Regulation on Generic Price Competition: A Review, 28 PharmacoEconomics 649 (2010).
23. Livio Garattini, Alessandro Curto & Nick Freemantle, Pharmaceutical Price Schemes in Europe: Time for a Continental One?, 34 PharmacoEconomics 423 (2016).
24. Competition Act, (1998).s. 8(1)(a): It is prohibited for a dominant firm to charge an excessive price to the detriment of consumers or customers.
25. United Brands Company and United Brands Continental BV v. Commission of the European Communities, (CJEU 1978).
26. Reena das Nair & Pamela Mondliwala, Excessive Pricing under the Spotlight: What Is a Competitive Price?, in Competition Law and Economic Regulation in Southern Africa: Addressing Market Power in Southern Africa (Jonathan Klaaren, Simon Roberts, & Imraan Valodia eds., 2017).
27. Willem H. Boshoff, South African Competition Policy on Excessive Pricing and Its Relation to Price Gouging during the COVID?19 Disaster Period, 89 South African J Economics 112 (2021).
28. Hazel Tau & others v. GlaxoSmithKline, Boehringer Ingelheim & other, (2003).
29. Pat Sidley, Competition Body Rules That Drug Companies Abused Their Position, 327 BMJ 946 (2003).
30. Competition Commission Prosecutes a Multinational Healthcare Company, Roche, for Excessive Pricing of a Breast Cancer Treatment Drug, (2022).
31. Competition Commission Of South Africa Prosecutes Roche for Excessive Pricing of a Breast Cancer Treatment Drug - BRICS Competition, www.bricscompetition.org (2022).
32. Duque, supra note 10.
33. Decision relating to a proceeding under Article 82 of the EC Treaty and Article 54 of the EEA Agreement, Case COMP/A. 37.507/F3 AstraZeneca (2005).
34. Autorties?bu un komunic?an?s konsult?ciju a?ent?ra / AKKA/LAA v. Konkurences padome, (2017).
35. supra note 17.
36. Id.
37. supra note 18.
38. Flynn Pharma Ltd and Flynn Pharma (Holdings) Ltd v Competition and Markets Authority, (CMA 2020).
39. Pfizer Inc and Flynn Pharma Limited v Competition and Markets Authority (EWCA 2020).
40. Unfair pricing in respect of the supply of phenytoin sodium capsules in the UK, (2022).
41. Antitrust: Commission opens formal investigation into Aspen Pharmas pricing practices for cancer medicines, European Commission (2017).
42. Aspen Pharmacare Holdings Ltd (Excessive Pricing Investigation), Case AT.40394 (2021).
43. Miroslava Marinova, Unmasking excessive pricing: evolution of EU law on excessive pricing from united brands to Aspen, European Competition Journal 1 (2023).
44. Esteban Greco, GOODBYE Excessive Prices as a Competition Law Infringement in Argentina, Competition Policy International (2023).
45. David Bardey, Antoine Bommier & Bruno Jullien, Retail Price Regulation and innovation: Reference Pricing in the Pharmaceutical Industry, 29 Journal of Health Economics 303 (2010).
46. supra note 40.
47. supra note 7
48. Mar Bakhoum, Intellectual Property Rights (IPRs), Competition Law and Excessive Pricing of Medicines, in Access to Medicines and Vaccines Implementing Flexibilities Under Intellectual Property Law (Carlos M Correa & Reto M Hilty eds., 2021).
49. Commission Decision relating to a proceeding under Article 82 of the EC Treaty and Article 54 of the EEA Agreement, Case COMP/A. 37.507/F3 AstraZeneca (2005).
50. Joo Pateira Ferreira, Pay-For-Delay Agreements under EU Competition Law A Comment on Paroxetine, 14 ULP Law Review 169 (2021).
51. Lundbeck v European Commission, T-472/13 (2016).
52. supra note 27.
53. William W. Fisher (III) & Cyrill P. Rigamonti, The South Africa AIDS Controversy: A Case Study in Patent Law and Policy, (2005)
54. Competition Commission of South Africa v Roche Products (Pty) Ltd and Genentech Inc (Competition Commission of South Africa); citation for this case is not publicly specified (since the investigation may not have led to formal adjudication, specific case numbers might not be publicly listed).
55. Alden F. Abbott, US Antitrust Laws: A Primer, (2021).
56. Frederick M. Abbott, Prosecuting Excessive Pricing of Pharmaceuticals under Competition Law: Evolutionary Development, 24 Colum. Sci. & Tech. L. Rev. (2023).
57. Supra note 52.
58. Michal S. Gal, Monopoly Pricing as an Antitrust Offense in the U.S. and the EC: Two Systems of Belief about Monopoly?, 49 The Antitrust Bulletin 343 (2004).
59. supra note 53.
60. United States, Excessive Pricing in Pharmaceutical Markets - Note by the United States, (2018).
61. Tad Lipsky et al., The Federal Trade Commissions Hearings on Competition and Consumer Protection in the 21st Century, Reverse-Payment Settlements, Comment of the Global Antitrust Institute, Antonin Scalia Law School, George Mason University, (2018).
62. Supra note 60.
63. Peter Davis & Vivek Mani, The Law and Economics of Excessive and Unfair Pricing: A Review and a Proposal, 63 The Antitrust Bulletin 399 (2018).
64. Augustine Peter & Neha Singh, Excessiveness of Prices as an Abuse of Dominant Position: The Case of India, in Excessive Pricing and Competition Law Enforcement 231 (Yannis Katsoulacos & Frdric Jenny eds., 2018).
65. Roundtables on Competition Policy- Excessive Prices, (2011).
66. HT Media v. Super Cassettes, (CCI 2011).
67. MCX Stock Exchange Ltd. v. National Stock Exchange of India Ltd., (CCI 2009).
68. Shamsher Kataria v. Honda Siel, (CCI 2011)
69. Biocon Limited and Mylan Pharmaceutical Private Ltd. v. F. Hoffmann-La Roche AG & Others, (CCI 2016).
References
1. Flynn Pharma Ltd. & Flynn Pharma (Holdings) Ltd. v. Competition & Mkts. Auth., [2020] CAT 11.
2. Verizon Communications Inc v Law Offices of Curtis v Trinko, LLP, (2004).
3. Frederick M. Abbott, Prosecuting Excessive Pricing of Pharmaceuticals under Competition Law: Evolutionary Development, 24 Colum. Sci. & Tech. L. Rev. (2023).
4. Prerna Raturi, Excessive Drug Pricing in Indian Pharmaceutical Market: Exploitative Practice or Aggressive Competition Conduct, 3 GNLU Journal of Law & Economics (2021).
5. Tim van Helfteren, Excessive Pricing in Pharmaceutical Markets: A Review of the Legal Test for Competition Authorities, 42 European Competition Law Review (2021) - from 2018 to 2022, compared to the nine years prior, there has been a noticeable increase in the average number of pharmaceutical antitrust decisions made per year by European competition authorities- See European Union, Update on Competition Enforcement in the Pharmaceutical Sector (2018-2022), (2024); Adam Acosta et al., United States: Pharmaceutical Antitrust, (2021).
6. Adam Acosta et al., United States: Pharmaceutical Antitrust, (2021).
7. Diletta Danieli, Excessive Pricing in the Pharmaceutical industry: Adding Another String to the Bow of EU Competition Law, 16 Health Economics, Policy and Law 64 (2020).
8. Id.
9. Antitrust: Commission opens formal investigation into Aspen Pharmas pricing practices for cancer medicines, European Commission (2017)
10. Omar Vsquez Duque, No Alarms and Many Surprises: Salience as a Basis for Excessive Pricing Intervention in an Antitrust Context, 16 J. Competition L. & Econ. 552 (2020).
11. Id.
12. Giorgio Monti & Alexandre de Streel, Exploitative Abuses: The Scope and the Limits of Article 102 TFEU, (2023).
13. Anca Daniela Chirita, Undistorted, Un(fair) Competition, Consumer Welfare and the Interpretation of Article 102 TFEU, 33 World Competition: L. & Econ. Rev. 417 (2010).
14. Margherita Colangelo & Claudia Desogus, Antitrust Scrutiny of Excessive Prices in the Pharmaceutical Sector: A Comparative Study of the Italian and UK Experiences, 41 World Competition: L. & Econ. Rev. 225 (2018).
15. Incremento Prezzi Farmaci/Aspen, (Italian Competition Authority 2016).
16. Vittorio Cerulli Irelli & Benedetta Marsicola, The Aspen case. Anti-competitive behaviour in price negotiations with AIFA., Lexology (2016).
17. CMA decision on Pfizer/Flynn (Competition and Markets Authority 2016).
18. Competition and Markets Authority, CMA fines Pfizer and Flynn 90 million for drug price hike to NHS, GOV.UK (2016).
19. Napp Pharmaceutical Holdings Limited and Subsidiaries v Director General of Fair Trading, 1 (CAT 2002).
20. John Davies & Jorge Padilla, Another Look at the Economics of the UK CMAs Phenytoin Case, in Excessive Pricing and Competition Law Enforcement 71 (Yannis Katsoulacos & Frdric Jenny eds., 2018).
21. Behrang Kianzad, Towards Fair Pricing of Medicines? Lessons from the European Commissions Aspen Decision, 6 European Health & Pharmaceutical Law 3 (2022).
22. Jaume Puig-Junoy, Impact of European Pharmaceutical Price Regulation on Generic Price Competition: A Review, 28 PharmacoEconomics 649 (2010).
23. Livio Garattini, Alessandro Curto & Nick Freemantle, Pharmaceutical Price Schemes in Europe: Time for a Continental One?, 34 PharmacoEconomics 423 (2016).
24. Competition Act, (1998).s. 8(1)(a): It is prohibited for a dominant firm to charge an excessive price to the detriment of consumers or customers.
25. United Brands Company and United Brands Continental BV v. Commission of the European Communities, (CJEU 1978).
26. Reena das Nair & Pamela Mondliwala, Excessive Pricing under the Spotlight: What Is a Competitive Price?, in Competition Law and Economic Regulation in Southern Africa: Addressing Market Power in Southern Africa (Jonathan Klaaren, Simon Roberts, & Imraan Valodia eds., 2017).
27. Willem H. Boshoff, South African Competition Policy on Excessive Pricing and Its Relation to Price Gouging during the COVID?19 Disaster Period, 89 South African J Economics 112 (2021).
28. Hazel Tau & others v. GlaxoSmithKline, Boehringer Ingelheim & other, (2003).
29. Pat Sidley, Competition Body Rules That Drug Companies Abused Their Position, 327 BMJ 946 (2003).
30. Competition Commission Prosecutes a Multinational Healthcare Company, Roche, for Excessive Pricing of a Breast Cancer Treatment Drug, (2022).
31. Competition Commission Of South Africa Prosecutes Roche for Excessive Pricing of a Breast Cancer Treatment Drug - BRICS Competition, www.bricscompetition.org (2022).
32. Duque, supra note 10.
33. Decision relating to a proceeding under Article 82 of the EC Treaty and Article 54 of the EEA Agreement, Case COMP/A. 37.507/F3 AstraZeneca (2005).
34. Autorties?bu un komunic?an?s konsult?ciju a?ent?ra / AKKA/LAA v. Konkurences padome, (2017).
35. supra note 17.
36. Id.
37. supra note 18.
38. Flynn Pharma Ltd and Flynn Pharma (Holdings) Ltd v Competition and Markets Authority, (CMA 2020).
39. Pfizer Inc and Flynn Pharma Limited v Competition and Markets Authority (EWCA 2020).
40. Unfair pricing in respect of the supply of phenytoin sodium capsules in the UK, (2022).
41. Antitrust: Commission opens formal investigation into Aspen Pharmas pricing practices for cancer medicines, European Commission (2017).
42. Aspen Pharmacare Holdings Ltd (Excessive Pricing Investigation), Case AT.40394 (2021).
43. Miroslava Marinova, Unmasking excessive pricing: evolution of EU law on excessive pricing from united brands to Aspen, European Competition Journal 1 (2023).
44. Esteban Greco, GOODBYE Excessive Prices as a Competition Law Infringement in Argentina, Competition Policy International (2023).
45. David Bardey, Antoine Bommier & Bruno Jullien, Retail Price Regulation and innovation: Reference Pricing in the Pharmaceutical Industry, 29 Journal of Health Economics 303 (2010).
46. supra note 40.
47. supra note 7
48. Mar Bakhoum, Intellectual Property Rights (IPRs), Competition Law and Excessive Pricing of Medicines, in Access to Medicines and Vaccines Implementing Flexibilities Under Intellectual Property Law (Carlos M Correa & Reto M Hilty eds., 2021).
49. Commission Decision relating to a proceeding under Article 82 of the EC Treaty and Article 54 of the EEA Agreement, Case COMP/A. 37.507/F3 AstraZeneca (2005).
50. Joo Pateira Ferreira, Pay-For-Delay Agreements under EU Competition Law A Comment on Paroxetine, 14 ULP Law Review 169 (2021).
51. Lundbeck v European Commission, T-472/13 (2016).
52. supra note 27.
53. William W. Fisher (III) & Cyrill P. Rigamonti, The South Africa AIDS Controversy: A Case Study in Patent Law and Policy, (2005)
54. Competition Commission of South Africa v Roche Products (Pty) Ltd and Genentech Inc (Competition Commission of South Africa); citation for this case is not publicly specified (since the investigation may not have led to formal adjudication, specific case numbers might not be publicly listed).
55. Alden F. Abbott, US Antitrust Laws: A Primer, (2021).
56. Frederick M. Abbott, Prosecuting Excessive Pricing of Pharmaceuticals under Competition Law: Evolutionary Development, 24 Colum. Sci. & Tech. L. Rev. (2023).
57. Supra note 52.
58. Michal S. Gal, Monopoly Pricing as an Antitrust Offense in the U.S. and the EC: Two Systems of Belief about Monopoly?, 49 The Antitrust Bulletin 343 (2004).
59. supra note 53.
60. United States, Excessive Pricing in Pharmaceutical Markets - Note by the United States, (2018).
61. Tad Lipsky et al., The Federal Trade Commissions Hearings on Competition and Consumer Protection in the 21st Century, Reverse-Payment Settlements, Comment of the Global Antitrust Institute, Antonin Scalia Law School, George Mason University, (2018).
62. Supra note 60.
63. Peter Davis & Vivek Mani, The Law and Economics of Excessive and Unfair Pricing: A Review and a Proposal, 63 The Antitrust Bulletin 399 (2018).
64. Augustine Peter & Neha Singh, Excessiveness of Prices as an Abuse of Dominant Position: The Case of India, in Excessive Pricing and Competition Law Enforcement 231 (Yannis Katsoulacos & Frdric Jenny eds., 2018).
65. Roundtables on Competition Policy- Excessive Prices, (2011).
66. HT Media v. Super Cassettes, (CCI 2011).
67. MCX Stock Exchange Ltd. v. National Stock Exchange of India Ltd., (CCI 2009).
68. Shamsher Kataria v. Honda Siel, (CCI 2011)
69. Biocon Limited and Mylan Pharmaceutical Private Ltd. v. F. Hoffmann-La Roche AG & Others, (CCI 2016).