Important note: Information in this article was accurate in 2006. The state of the art may have changed since the publication date.
South African Press Association - December 8, 2006
On Wednesday, the Competition Commission was found to have acted beyond its power by agreeing not to refer a complaint about drug pricing to the Competition Tribunal.
The Competition Appeal Court judgement is limited to an agreement between the commission and GlaxoSmithKline, said Jonathan Berger, of the Aids Law Project.
This is separate to an agreement between GlaxoSmithKline and the TAC and its allies, Berger said. "It has no impact on the separate -- but largely similar -- agreement entered into between the TAC and its allies on the one hand and [GlaxoSmithKline] on the other."
A similar agreement exists with Boehringer Ingelheim for the antiretroviral drug nevirapine.
The settlement agreements with the TAC in 2003 saw GlaxoSmithKline agree to license at least four pharmaceutical companies to produce or import generic AZT and 3TC. "The agreements remain and are still valid and binding," Berger said.
In 2002 the TAC and its allies lodged a complaint with the commission arguing that GlaxoSmithKline and Boehringer Ingelheim charged excessive prices for antiretrovirals.
As a result of the complaint, antiretroviral prices have plummeted, Berger said.
The Competition Appeal Court judgement on Wednesday ruled that the commission is obliged to refer to the tribunal any complaint that it believes involves a prohibitive practice.
Berger said the commission had published a decision to refer but referral papers were not filed and that the commission did not have the power to settle complaints on its own.
AZT, 3TC and nevirapine are drugs used in the prevention and treatment of HIV infection.
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