The Bitter Medicine: Competition Law and Parallel Trade in the Pharmaceutical Sector

The economic crisis and the growing urge of governments to cut public expenditure – particularly its heftier items, among which is pharmaceutical spending – have, in recent times, brought back on the agenda of pharmaceutical companies the issue of how to lawfully limit parallel trade of their products towards lower-price EU Member States. This objective may prove particularly hard to achieve since, from a EU competition law standpoint, parallel trade has been traditionally perceived as beneficial for consumers, as well as a force towards EU single market integration. This article aims at assessing, under a EU competition law perspective, the most common paths chosen by companies to deal with parallel trade, by relying on the (limited) case-law of EU courts and by providing a detailed and practical analysis of every available option.