GlaxoSmithKline: Anti-competitive business model

GSK attempted to overcharge for its over-the-counter pain and fever medication ‘Cocine Advance’ tablets in India. The company thereby exceeded price controls that ensure access to ‘essential medicine’, as based on the WHO Essential Medicines list. GSK was fined approximately €5.5 million in May 20141.

In April 2013, the UK Office of Fair Trading accused GSK of violating the competition law by paying rivals to put off the release of their similar but cheaper products in order to keep the price of Seroxat high and stable2.

GlaxoSmithKline was sentenced to pay US$ 105 million (€81 mill) to 44 US states to settle allegations of off-label marketing, between 1999 and 2010. GSK allegedly used lavish payments and incentives for salesmen and doctors to promote its medicines beyond their approved purpose3.

  1. Dey, S. (2014): GSK Consumer fined for overcharging; Business Standard, May 28 (accessed 25.08.2014) []
  2. Neville, S., & Rankin, J. (2013): GlaxoSmithKline accused of paying rivals to delay generic medicine; The Guardian, April 19 (accessed 15.10.2014) []
  3. Calia, M. (2014): GlaxoSmithKline to pay $105 million in multistate settlement; Wall Street Journal, 4 June (accessed 15.02.2014) []