US FTC testifies on pharmacy antitrust law

The US Federal Trade Commission has testified to a hearing of the Antitrust Task Force of the House of Representatives' Committee on the Judiciary against HR 971, the Community Pharmacy Fairness Act of 2007. The proposal would exempt independent and family pharmacies from regulations that prevent engaging in collective bargaining to secure higher fees from health care payers.

The FTC opposes HR971 on the grounds that it is too broad in scope and that any health care benefits will not compensate for the reduced competition in the pharmacy sector. David Wales, the FTC's Deputy Bureau of Competition Director, said that, although the new legislation "not only would grant competing sellers a powerful weapon to obstruct innovative arrangements for the delivery and financing of pharmaceuticals, but would also dull competitive pressures that drive pharmacies to improve quality and efficiency."