A PYMNTS Company

House Republicans Investigate CVS Caremark Over Alleged Antitrust Violations

By  |  December 15, 2024

House Republicans are investigating whether CVS Caremark, a major pharmacy benefit manager (PBM), violated federal antitrust laws by allegedly pressuring independent pharmacies to avoid using cost-saving services outside the PBM’s network. According to The Hill, House Judiciary Committee Chair Jim Jordan (R-Ohio) has requested detailed records from CVS regarding its practices around pharmaceutical hubs.

In a letter to the company, Jordan sought documents and communications about these hubs, which are digital services designed to simplify the process of accessing and managing complex, high-cost specialty medications. These hubs, often sponsored by drug manufacturers, act as intermediaries between manufacturers and specialty pharmacies to help patients receive critical medications.

Jordan expressed concern that CVS Caremark’s policies may prevent independent pharmacies from participating in these hubs if they operate outside the PBM’s network. Per The Hill, the congressman argued that this could stifle competition, suggesting that excluding pharmacies from such arrangements could “choke off would-be competitors before they enter the market and lower prices for consumers.”

The letter highlighted the potential consequences for patients, stating that limiting access to pharmaceutical hubs could negatively impact patient welfare and innovation in the healthcare industry. Jordan noted that if CVS Caremark is blocking independent pharmacists from connecting patients to these services, it could undermine efforts to improve access and affordability.

Pharmacy benefit managers like CVS Caremark have faced growing scrutiny from lawmakers and regulators due to their role as intermediaries in the drug supply chain. PBMs negotiate drug prices and terms on behalf of health plans, affecting access to medications for millions of Americans. Critics argue that PBM practices often lack transparency and may contribute to rising drug costs.

Source: The Hill

Indian Ad Agencies Warned Against WhatsApp Discussions After Antitrust Raids Indian Ad Agencies Warned Against WhatsApp Discussions After Antitrust Raids

Indian Ad Agencies Warned Against WhatsApp Discussions After Antitrust Raids

By  |  April 17, 2025

In the wake of sweeping antitrust raids by Indian authorities, leading advertising agencies have been cautioned against sharing sensitive commercial information through informal communication channels, including WhatsApp, according to a document cited by Reuters.

The advisory, issued by the Advertising Agencies Association of India (AAAI), follows surprise inspections carried out by the Competition Commission of India (CCI) on March 18. These dawn raids were part of a broader investigation into alleged price collusion and discount manipulation in India’s $18.5 billion advertising industry—one of the fastest-growing globally and currently ranked the eighth largest by revenue, Reuters reported.

The CCI’s actions have rattled the country’s dynamic advertising ecosystem, especially the broadcast and digital streaming sectors, where major players like Reliance-Disney and Sony dominate. The probe is likely to have a lasting impact on how media buying is structured and priced in India, particularly among global agencies operating in the region.

The AAAI, whose membership includes prominent firms such as GroupM (owned by WPP), Japan’s Dentsu, and France’s Publicis, has urged its affiliates to steer clear of discussions involving pricing or any other commercially sensitive data. In an advisory dated March 26 and prepared by legal firm Trilegal, the association emphasized that members must exit existing WhatsApp groups and cease any form of such communication, per Reuters.

Related: WhatsApp Secures EU Court Adviser’s Backing in Privacy Fine Dispute

The document explicitly warned, “Members are requested not to discuss (through any mechanism, including emails, WhatsApp groups, documents, any informal, or formal meetings), any commercially sensitive information.” This includes pricing strategies, which could fall afoul of India’s competition regulations.

The CCI’s probe was reportedly triggered by leniency applications, a mechanism that incentivizes whistleblowers with reduced penalties in exchange for evidence of anti-competitive behavior. Among those cooperating with the investigation is Dentsu, which reportedly submitted internal findings of collusion along with a 2023 procedural document jointly issued by the IBDF (Indian Broadcasting and Digital Foundation) and AAAI, according to Reuters.

The March raids also extended to the offices of the IBDF in New Delhi, a powerful industry body representing major broadcasters. The investigation remains ongoing, and the CCI typically does not disclose details until a case reaches completion—a process that can take years.

While the CCI, AAAI, and involved media buying agencies have not responded to Reuters inquiries, Trilegal declined to comment, citing ongoing legal proceedings. The advisory from AAAI stressed that any form of coordination involving sensitive business data could raise red flags under India’s competition laws and expose parties to further enforcement action.

Source: Reuters