No free lunch

31 May 2005 By Robert Cyran Follow @rob_cyran

An EU court has failed to uphold the right of drugs groups to maintain different prices in different markets. That s bad news, not least for people in poor countries. They may eventually find their access to drugs restricted.

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The European Court of Justice has decided that it lacks jurisdiction to rule in a case between GlaxoSmithKline and the Greek Competition Commission. Glaxo had restricted supply of three drugs to Greek wholesalers after the group found the wholesalers were shipping pills to other European countries where prices were higher. The Greek Commission stated that Glaxo's actions violated EU rules on parallel trading.

In October, the EU's advocate general issued an opinion that Glaxo's actions were lawful. Normally the court sides with decisions made by the advocate general.

The lack of decision leaves EU law in place. In other words, it is illegal to restrict the reimportation of drugs.

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