Australian Competition and Consumer Commission v Pfizer Australia Pty Ltd

The Australian Competition and Consumer Commission brought an action against Pfizer Australia Pty Ltd in relation to its conduct in the market for the pharmaceutical product atorvastatin. The Commission alleged that Pfizer abused its market power by engaging in exclusive dealing practices that were anti-competitive. The Federal Court was tasked with determining whether Pfizer's actions amounted to an abuse of market power under the Competition and Consumer Act 2010.

The court was required to consider several legal issues, including the definition of market power and whether Pfizer held substantial market power in the atorvastatin market. It also needed to examine whether Pfizer's conduct amounted to taking advantage of its market power and whether the purpose behind its actions was to eliminate or harm competition. Additionally, the court had to determine whether the exclusive dealing arrangements between Pfizer and the pharmacies constituted a breach of the Act.

The court concluded that Pfizer did not hold substantial market power in the atorvastatin market, and therefore, the issue of abuse of market power did not arise. The court found that Pfizer's decision to enter the generic market and its implementation of the Direct-to-Pharmacy Model and the rebate scheme were reasonable business decisions aimed at competing in the market. The court held that the exclusive dealing arrangements did not amount to an abuse of market power as they were necessary to compete with established generic manufacturers and pharmacies. The court also rejected the Commission's argument that the rebates were an unlawful condition falling within the trade practices exception to section 47 of the Act.

ORDERS:
1. The Amended Originating Application filed by the Australian Competition and Consumer Commission is dismissed.
2. The Applicant is to pay the costs of the Respondent.