Will Recent Excessive Pricing Cases Lay Down Precedent For Future?

The recent upsurge in cases of high drug prices being pursued by competition authorities in Europe could help to lay down some markers for judging what is an “excessive” price in future. At the same time, Brexit could see the UK and the EU begin to drift apart in terms of how they apply competition law to pricing issues.

money and magnifying glass showing financial success — Pricing practices under scrutiny • Source: Shutterstock

European competition authorities have traditionally been wary of pursuing cases of “excessive” or “unfair” medicine prices, not least because the burden of proof is high and it is generally accepted that action should be started only in exceptional cases. Change is in the air, though, and the number of investigations undertaken has risen noticeably in recent years.

Decisions over the next year or two in recent cases brought forward by competition authorities are expected to help clarify the criteria for determining whether prices are “excessive,” although they...

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