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GlaxoSmithKline v. Commission
European Union Court of Justice
Cases C-501/06 P, C-513/06 P, C-515/06 P and C 519/06 P, 2009 E.C.R. I-9291 (2009)
GlaxoSmithKline (GSK) (defendant) sold pharmaceutical products to Spanish wholesalers. GSK charged those wholesalers more if they resold outside of Spain than if they resold GSK’s products in Spain. GSK conceded that this pricing practice was intended to impede parallel trade, and the European Commission (commission) (plaintiff) held that GSK’s conduct violated Article 101 of the Treaty on the Functioning of the European Union (TFEU). The commission found that GSK’s conduct was a restriction by object; as a result, the commission did not need to prove anticompetitive effects. On appeal, the general court reversed, holding that GSK’s agreements were not restrictions by object and therefore the commission did need to prove anticompetitive effects. The commission appealed to the European Union Court of Justice.
Rule of Law
Holding and Reasoning
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