Reckitt fined £10m after Gaviscon probe

15th Oct 2010 07:13

Reckitt Benckiser has been fined £10.2m for abuse of the dominant market position of its heartburn treatment Gaviscon in 2005.Reckit admitted infringing UK and European competition law by withdrawing and de-listing Gaviscon Original Liquid from the NHS prescription channel in 2005.The Office of Fair trading said Reckitt withdrew Gaviscon Original after the product's patent had expired but before the publication of the generic name for it, so that more prescriptions would be issued for its alternative product, Gaviscon Advance Liquid.Gaviscon Advance is patent protected and there are no generic alternatives, the OFT added."Vigorous competition between firms supplying the public sector is vital to ensure taxpayers get the best value for money," said John Fingleton, the OFT chief executive."This case underlines our determination to prevent companies with a dominant position in a market from using their strength to seek to restrict competition from rivals," he added.The fine was reduced from £12m after Reckitt Benckiser admitted the offence and co-operated with the probe. The OFT issued its original Statement of Objections on 23 February 2010.