Keywords
Georgia, competition law enforcement, price fixing, pharamaceurical market, oncology drug program
Abstract
This case comment examines a landmark decision by the Georgian Competition and Consumer Agency (hereinafter, “GCCA”; “the Agency”) concerning coordinated pricing among major pharmaceutical distributors in Georgia’s state-funded oncology medication program. The GCCA found that four leading companies – Aversi Pharma, PSP, Gepha, and Mermisi – repeatedly submitted identical price offers in a closed procurement portal, in violation of Article 7 of the Georgian Law on Competition, which prohibits restrictive agreements. The agency’s findings were based on indirect economic evidence, including the statistical improbability of such pricing alignment across 88 instances, ultimately leading to fines exceeding 53 million GEL. The case is significant not only for its legal conclusions but also for its timing. Issued shortly after Georgia was granted EU candidate status in December 2023, the decision can be interpreted as part of a broader effort to respond to EU criticism of Georgia’s underdeveloped competition enforcement. The ruling was subsequently recognized by the World Bank Group and the International Competition Network as an international best practice in promoting consumer welfare and competition. By analyzing the legal, economic, and policy dimensions of the case, this article argues that the decision represents a cautious yet promising step toward more effective oversight in Georgia’s pharmaceutical sector – a market historically characterized by high prices, limited competition, and regulatory inertia. At the same time, the case reveals persistent challenges in evidence gathering, judicial resilience, and institutional independence. The comment concludes that while the case signals growing enforcement maturity, lasting reform will require sustained regulatory vigilance, greater agency autonomy, and continued convergence with EU competition standards.
Acknowledgements
Funding
This article received no funding.
Declaration of Conflict of Interests
The authors declared no potential conflicts of interest with respect to the research, authorship and publication of this article.
Declaration about the scope of AI utilization
The authors declared using AI tools in the preparation of this article.
Recommended Citation
Gvelesiani, Z. (2025). Europeanization of Georgian Competition Law. Yearbook of Antitrust and Regulatory Studies, 18(31). https://doi.org/10.7172/1689-9024.YARS.2025.18.31.8
Page Count
27
Received Date
27.05.2025
Accepted Date
05.06.2025
DOI
10.7172/1689-9024.YARS.2025.18.31.8
JEL Code
K21, L65, I18
Publisher
University of Warsaw
