Earlier this year, the French Competition Authority (“FCA”) held that Sanofi-Aventis infringed the competition laws by implementing a “denigration strategy” aimed at convincing healthcare professionals to limit prescriptions and sales of generic versions of its branded product, Plavix.  As punishment for the infringement, the FCA fined Sanofi-Aventis €40.6 million.

This decision is another example of competition authorities extending the application of the competition rules to cover any activity perceived to not be “competition on the merits”.  In combination with the very low standards applied by the FCA to find that a company is dominant, this case raises serious concerns for pharmaceutical companies, as criticism of generic pharmaceuticals or other behaviour outside of “competition on the merits” could trigger investigations and large fines.
Continue Reading Abusive Denigration: Reflections on the Case of the French Competition Authority against Sanofi-Aventis