Baxter busted by ACCC
August 30, 2010
BAXTER Healthcare has found
itself in hot water after the Federal
Court ruled in favour of the
Australian Competition and
Consumer Commission’s claim that
the company had engaged in anticompetitive
practices.
The ACCC lawsuit has been
ongoing between Australian courts
for eight years, and stems from
contracts that Baxter had with ACT,
NSW, Qld, SA and WA health
purchasing authorities between
1998 - 2001 which offered
package discounts for sterile fluids.
The Federal Court found that
Baxter, being the sole supplier of
peritoneal dialysis fluids in
Australia, broke competition law by
using its market power to stop
competition.
“Baxter used its market power in
the sterile fluids market to achieve
exclusive dealing by means of
bundling to endeavor to snuff out
competition,” said Judge Roger
Gyles in handing down his decision
last year.
As a result of the 2008 ruling,
last week the Federal Court
ordered Baxter to pay AU$4.9
million in fines.
Following the Federal Court
ruling last year, Baxter appealed to
the High Court of Australia,
however the court refused to hear
the company’s case until the
Federal Court had imposed its
penalty decision.
Following last week’s $4.9m
impost, the case is now open for a
High Court hearing.
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