In the News
Anti-competitive behaviour - UK drug companies fined £260m for inflating prices for NHS
15th July 2021
The Competition and Markets Authority (CMA) has fined a UK drug company £260m for inflating the price of hydrocortisone tablets for a decade.
Accord-UK, which was made up of Auden Mckenzie and Actavis UK, were able to increase the price of a 10mg packet of tablets from 70p in April 2008 to £88 by March 2016 using a variety of tactics, not least paying potential rivals not to enter the market.
As a result, the NHS was forced to pay higher prices for the drug.
The head of the CMA is quoted as saying:
“These are without doubt among the most serious breaches we have uncovered in recent years. Our fine serves as a warning to any other drug firm planning to exploit the NHS.”
I pose a simple question: why isn't this a criminal case?
Hasn't the company defrauded the taxpayer of millions of pounds? And haven't the executives of the company been well-rewarded for doing so? It seems that fines are just another cost of doing business as directors seek higher profits, remuneration and dividends
You might also like
Amazon agrees e-book pricing deal with major publisher
21st October 2014
Growing Challenges Facing Privatised Royal Mail
17th October 2014
Tim Harford on Monopoly and Innovation
27th August 2014
Business De-mergers
Study Notes
Competition & Monopoly Revision Quiz
Quizzes & Activities
Introduction to Market Failure
Study Notes
Competition and Markets Authority to investigate pie merger
20th December 2014
Oligopoly - What is Tacit Collusion?
Study Notes