The Application of EU Competition Law in the Pharmaceutical Sector: The Case of Parallel Trade

Abstract:

Parallel trade traditionally enjoys a significant protection from European Institutions, in the belief that it fosters competition and encourages trade. However, pharmaceutical companies claim that this form of competition undermines their incentive to innovate and threatens the competitiveness of the European pharmaceutical sector. This Article analyses a) the arguments put forward in favour of and against the freedom of the parallel trade of pharmaceuticals between the EU Member States and b) the case-law relating to the parallel trade of pharmaceuticals developed by the EU courts and, more specifically, by the Court of Justice ("CJ") (former Court of Justice of the European Communities/"ECJ") and by the General Court ("GC") (former Court of First Instance of the European Communities/"CFI") in the light of EU competition law (Arts 101-102 of the TFEU).