Hadiputranto, Hadinoto & Partners Successfully Advised Pfizer Inc (US), Pfizer Overseas LLC (US), Pfizer Global Trading (Ireland), and Pfizer Corporation Panama (Panama) on their Challenge of the Indonesian Anti-Monopoly Commission (KPPU) Decision
15 September 2011
Jakarta, Indonesia, 15 September 2011 – Hadiputranto, Hadinoto & Partners (HHP) successfully advised Pfizer Inc (US) , Pfizer Overseas LLC (US), Pfizer Global Trading (Ireland), and Pfizer Corporation Panama (Panama) on their challenge of the Indonesian Anti-Monopoly Commission (KPPU) decision in which Pfizer Inc (US), Pfizer Overseas LLC (US), Pfizer Global Trading (Ireland), Pfizer Corporation Panama (Panama), PT Pfizer Indonesia, and PT Dexa Medica were found guilty of price fixing (Article 5), cartel (Article 11), illegal agreement with foreign parties (Article 16) and abuse of dominant position (Article 25(1)a) under the Law No. 5 of 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition with regards to the manufacture and sale of an antihypertensive drug.
This was the first Indonesian cartel case involving the pharmaceutical industry. KPPU held that several Pfizer entities and the Indonesian pharmaceutical company, PT Dexa Medica, conspired to regulate the production and the pricing of the antihypertensive drugs Norvask and Tensivask, causing the prices to be excessive for consumers. KPPU therefore imposed a fine on each of the Pfizer entities and PT Dexa Medica and issued an order to lower the price of Norvask by 65% and Tensivask by 60%.
HHP successfully argued before the Central Jakarta District Court that the KPPU findings were baseless and lacked evidence. There was no price fixing or cartel, and the prices of Norvask and Tensivask were the reflection of the market mechanism. HHP asked the Court for an additional examination to hear several expert testimonies to support our objection. The Court found in favor of all Pfizer entities and PT Dexa Medica and revoked the KPPU decision in its entirety, in agreement with HHP’s arguments.
Wimbanu Widyatmoko, Managing Partner of HHP said, “This is a high profile case and a very complex one. On completion, we were pleased when we heard that the Jakarta District Court overruled the decision of the Indonesian Anti-Monopoly Commission against the Pfizer group of companies on the alleged violation of the Indonesian anti-monopoly laws. This case would cement Pfizer's existing position in Indonesia.”
The HHP team also involved other partners including Mochamad Fachri, who led on the deal from the Firm’s Trade & Anti-Monopoly Practice Group; Hendronoto Soesabdo from the Firm’s Commercial Disputes Practice Group; and associates from both practice groups.