UK: Reckitt Benckiser fined for market abuse
Date: 20 Oct 2010
Household products group Reckitt Benckiser admitted abusing a dominant position in the marketplace, and is likely to be hit with a 10m pound fine. The company had withdrawn its Gaviscon Original Liquid from National Health Service (NHS) prescription use when it came off patent - forcing doctors to prescribe an alternative Reckitt product which was still covered by patent.
According to the Office of Fair Trading, this made it harder for doctors to prescribe cheaper generic alternatives to patients.
The company originally denied wrongdoing, but has now admitted that it acted as charged. It claims that it believed at the time the actions were taken that it was acting within the law.
It is now likely that the NHS and the company's competitors will launch damages lawsuits. The original investigation was prompted by a complaint Pinewood, a generic drug manufacturer.
You must be logged in to add comments
In a recent article, the BBC's economics editor Robert Peston highlighted the fact that in 2012 the chances are that the economy - punch drunk as it is from the various flavours of debt crisis it has been pummelled with over the course of the year - will be hit by the collapse of a major bank and / or government.
Similar news stories
From the same country
Currently most popular stories