European Court of Justice Orders EC to Consider Pro-Competitive Justifications for Limiting Parallel Trading

The European Court of Justice has upheld a lower court’s reversal of a European Commission decision to prohibit Glaxo-SmithKline from restricting parallel trading of drugs among countries within the EU.  Following a policy of open parallel trading the Commission rejected Glaxo-SmithKline’s attempt to sell a number of drugs into the Spanish market at lower prices, but with restrictions on re-sale outside of Spain.  The ECJ ordered the Commission to consider the evidence supporting Glaxo-SmithKline’s argument that restrictions on parallel trading helped support research and development that is critical to the drug industry.

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