GSK Case Study Example | Topics and Well Written Essays - 250 words

GSK - shimmy Study ExampleGSK had several arguments in its defense. First, it argued that it was not breaching any competition laws since national governments already controlled and restrict the pharmaceutical sector (Schultz & Killick 2006, p.2). Secondly, GSK averred that opening up the pharmaceutical sector to analog market operations would negatively impact on their revenues hence, hampering their role in research and development. In addition, parallel market operations tended to arrive at shortages of medicine in low-price countries as businesses were buying them from such countries and shipping them off to high-price countries within the EU in order to rake in huge profits.Nevertheless, some arguments clearly compromised GSKs position. To begin with, GSK could not be exempted from Article 81 of the European Union that outlaws any activity that restricts trade among member states (Covingon & Burling 2005). Limiting parallel market operations would amount to undermining compe tition within EU member states (Morgan Lewis 2009, p. 1). Secondly, pharmaceutical companies, especially GSK, were not contributing towards the improvement of the production and distribution of medical products. Moreover, GSK had not been party to the promotion of technical and scotch growth in their countries of operation. Consequently, the giant pharmaceutical corporation lost the case.Covington & Burling (2005) Parallel Trade in pharmaceutic Products in Europe The European Court of Justices Ruling in Syfait v. GSK.Online. Available from http//www.cov.com/files/ military issue/13800cb1-53df-44f7-8fc6-acef546be00b/Presentation/PublicationAttachment/02f82d54-11c6-41ce-9dad-b190bfc3309c/oid11576.pdf. Accessed April 29, 2014.Morgan Lewis. (2009) European Court of Justice Delivers Mixed Message on Parallel Trade. Morgan Lewis. Online October 6, 2009. Available from http//www.morganlewis.com/pubs/ATR_EuropeanParallelTrade_LF_06oct09.pdf. Accessed