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Europe Daily Bulletin No. 7923
Contents Publication in full By article 24 / 42
GENERAL NEWS / (eu) eu/competition

Start of procedure against Health, in Germany

Brussels, 14/03/2001 (Agence Europe) - The European Commission has sent a statement of objections to the American firm IMS HEALTH, the world's leader in data collection on pharmaceutical sales and prescriptions, in view of imposing interim measures on the company, following its refusal to grant a licence to its regional sales data method in Germany (where IMS has a dominant position). According to the Commission, this refusal is an abuse of a dominant position, preventing new competitors from entering and maintaining themselves on the market, and risks causing serious and irreparable injury to IMS's two current rivals: the American firm NDC Health and Belgian AzyX Geopharma Services.

In a press release, the Commission notes that data on the sale of medicines and, in the case at hand, regional data, are an essential instrument for pharmaceutical companies, which use this information to allocate sales territories, develop incentive schemes for their sales representatives and inform their sales force about market changes. In the early-70s, IMS, in collaboration with pharmaceutical companies, had established in Germany a method for collecting data on regional sales (a 1860 brick structure) that the pharmaceutical industry considers to be an essential tool for obtaining the information it needs. In 2000, IMS lodged a complaint before the Landgericht of Frankfurt against NDC and AzyX, as they are alleged to have breached copyrights on the 1860 brick structure, and the Court had prohibited the two companies from using this structure. NDC and AzyX had then unsuccessfully asked IMS to grant them a licence to be able to use the method, but IMS refused. Which, in December 2000, led NDC to lodge a complaint with the Commission, claiming that, without the licence, it would be impossible for it to do business in Germany.

The statement of objections addressed by the Commission is a preliminary document initiating the procedure in view of the adoption of interim measures, the press release stipulates, recalling that the procedure in view of interim measures were rare (less than fifteen cases)., and that the Commission only uses it in case of serious and irreparable injury. IMS has two weeks on reception of the statement of objections to submit its comments, and may also request a hearing. The adoption of interim measures does not end the procedure, as the Commission is pursuing in enquiry as to substance.

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