16 07 2025
                                                                                                    
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The dispute over whether the Lithuanian Pharmaceutical Association (LPA) and its members were justifiably fined for entering into an anti-competitive agreement is moving to the Supreme Administrative Court of Lithuania – today, the Competition Council submitted an appeal outlining the reasons why it is requesting the annulment of the decision adopted by the court of first instance.



The Competition Council disagrees with the conclusion made by the Regional Administrative Court that the actions of the LPA and the pharmaceutical companies did not violate competition rules, as they were carried out not in the market context but as part of the legislative process, during which the Ministry of Health set the margins on medicines.



In its appeal, the Authority presented its position along with legal and factual arguments explaining why it disputes the assessment of the case facts provided in the first-instance court’s decision of June 17, addressing various aspects.



In 2022, the Competition Council found that by submitting coordinated margins and their calculations, the LPA and the pharmaceutical companies had a significant influence on the Ministry‘s decisions regarding the margins. The Ministry, which did not have information on the costs incurred by businesses, relied on the margins agreed between the LPA and competitors, and subsequently – having made amendments agreed with the LPA – approved them. For the established violation of the Law on Competition and the Treaty on the Functioning of the European Union, the association and eight pharmaceutical companies were fined more than EUR 72 million.

                                        

                                                                                                        
                                
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                                                                            Last updated: 16 07 2025

Lithuanian Competition Authority Appeals Court Ruling on Pharmaceutical Agreement

The Lithuanian Competition Council has taken its case to the Supreme Administrative Court, seeking to overturn a previous ruling by the Regional Administrative Court. This ruling found that the Lithuanian Pharmaceutical Association (LPA) and its member companies did not breach competition laws when they coordinated drug pricing margins during a legislative process.

 The Competition Council argues that the actions of the LPA and the pharmaceutical companies constituted an anti-competitive agreement, as they significantly influenced the Ministry of Health's decisions on medicine pricing. The Ministry, lacking detailed cost information from the companies, relied on the agreed margins, which were subsequently approved after amendments were made in consultation with the LPA.

 In 2022, the Competition Council imposed fines exceeding EUR 72 million on the LPA and eight pharmaceutical companies for violating the Law on Competition and the Treaty on the Functioning of the European Union. The appeal outlines the Council's legal and factual arguments against the first-instance court's decision, emphasizing the need for strict adherence to competition rules.



Lithuanian Competition Authority Appeals Court Ruling on Pharmaceutical Agreement

The Lithuanian Competition Council is appealing a court decision that cleared the Lithuanian Pharmaceutical Association and its members of anti-competitive behavior related to drug pricing agreements.