Previously, GlaxoSmithKline’s (GSK) subsidiary in Greece, GSK AEVE, stopped supplying Greek wholesalers in November 2000, citing product shortages, and started distributing to hospitals and pharmacies directly. Consequently, wholesalers and pharmacist groups lodged complaint against GSK with Greece’s competition commission.
After the wholesalers claimed that GSK AEVE’s sales policy was in breach of both Greek and EU competition law, and filed successive complaints, the Athens Court of Appeal sought the ECJ’s judgement on aspects of the case relating to EU regulations.
Finally, the ECJ ruled that GSK AEVE, by refusing to meet the Greek wholesalers orders had attempted to limit their parallel exports, thereby violating the EU competition laws by abusing its dominant position.
Recognizing the importance of commercial interests of companies in drug trade, the European Court of Justice (ECJ), however, asked the national courts to use their discretion in quantifying drug orders. If parallel trade results in shortages in a given market, then it becomes the responsibility of the national authorities rather than the dominant supplier, to resolve the situation, the ECJ said. But both the rival groups welcomed the ruling and claimed victory over the other.
PharmaTimes has quoted Arthur Higgins, president of the European Federation of Pharmaceutical Industries and Associations, as saying: “Competition policy should not be used to export the health choices of one member state to another, but should protect consumers and patients rather than parallel traders.”
However, the parallel importers, represented by the European Association of Euro-Pharmaceutical Companies said that the ruling prohibits the manufacturers from harming legitimate competitors and hurting parallel trade.