ECJ on parallel trade: no clear ruling

29 March 2009

The European Court of Justice ruling on whether the Greek unit of UK-headquartered drug major GlaxoSmithKline could lawfully refuse to  supply a wholesaler in order to curb parallel trade, has left a  confusing situation. The case was brought because the Athens Court of  First Instance requested a ruling from the ECJ as to whether a dominant  supplier could refuse to meet wholesaler requests in order to prevent  the medicines from being re-exported to other European Union states,  where prices are higher.

According to a commentary by attorneys from Ireland-based law firm  William Fry Solicitors, the ruling by the ECJ that "out of the ordinary"  purchase orders by wholesalers could be denied, means that national  courts will be asked to determine the issue, creating further  opportunities for litigation and different rules across the EU.

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