Excessive Pricing in the Pharmaceutical Market – How the CAT Shot Down the CMA’s <i>Pfizer/Flynn</i> Case

Abstract

The article analyses the recent judgment of the UK Competition Appeal Tribunal (CAT) which annulled the decision fining Pfizer and Flynn Pharma for abusing their dominant position by charging excessive prices for a pharmaceutical product. While competition authorities have historically been quite reluctant to bring excessive pricing cases, lately there has been a flurry of activity, particularly in the pharmaceutical markets. The UK Competition and Markets Authority (CMA) has been at the forefront of this activity. The CAT’s ruling serves as a useful reminder that competition authorities can of course elect to prioritise excessive pricing cases but their decisions must be ‘soundly based on proper evidence and analysis’.