CVS Health Corp. has reportedly launched a new prescription drug plan that encourages customers to fill prescriptions at stores that do not sell tobacco products, like CVS. But according to some antitrust experts, the new incentives could raise antitrust concerns.
Reports say the plan charges prescription refill copays of up to $15 more when customers fill prescriptions at a store that sells tobacco products. Those stores include CVS rivals Walgreens, Rite-Aid and others.
While CVS says the new plan was the product of calls for a tobacco-free pharmacy network, experts say there could be legal trouble ahead as the program could unfairly steer customers towards CVS stores.
Former Federal Trade Commission executive David Balto, who is currently an antitrust attorney, says the pharmacy plan is concerning. “There’s no cost savings that comes about from limiting the network,” he said. “it’s really another effort to limit the ability of their rivals to effectively compete.”
The head of the Independent Pharmacy Alliance, John Giampolo, agrees. “It’s an unfair competitive practice,” he said.
Full content: Yahoo Finance
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Turkey Hits Meta with $37.20 Million Fine Over Data-Sharing Practices
May 8, 2024 by
CPI
Google Seeks Dismissal of UK Suit Over Alleged Anti-Competitive Practices
May 8, 2024 by
CPI
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI