Enhancements of ’Competition Culture’ in Pharmaceutical Sector: Anti-Competitive Infringements and Consumer Welfare

Abstract

Indeed, it is the economic regulation that shaped present ‘competitive market structure’ in Malaysia. This market structure hence generated the ‘competition culture’ in many industries. The structural changes contributed to transition of a regulated market-based to open market- based economy. The transition saw competitive market structure illustrated by the involvement of private and public enterprise as market players in the main and sub sectors. The first sectors were telecommunication and energy. These sectors have shown stable and robust competitiveness in the market whereby private entities and independents telecommunication companies compete in the Malaysian tele-communication market. The competitive culture saw a liberalised and deregulated market based that brought about efficiencies in services, prices and innovations. Secure and continuous pharmaceutical supplies are structural responsibilities shared by all stakeholders in the market. Pharmaceutical industry generated and garnered extensive intellectual rights in terms of drugs, services and medical supplies. Manufacturers in pharmaceutical sectors invests massive funding to develop new creations, this is evident by the COVID-19 vaccines, patent and trademarks rights are thus awarded to the creators of the innovation.The ‘competition culture’ illustrated through stable and extensive electricity, internet coverage, lower prices, choices of products and services for customers. Amidst the post pandemic crisis, pharmaceutical supply chain has become one of the important sector that require attention in sustainability and accessibility. Documentary examination shows, to date, present pharmaceutical market structure divided between levels 1, 2 and 3 represent monopolistic and oligopolistic structural framework. Summative assessments revealed there are ant –competitive behaviour’s concerns in the sector. Instituting ‘competition culture’ and enhance competition regulatory measures are pivotal in advocating a level playing fields in all three levels. Comparative method examination from other jurisdiction experiences and lessons are the parameters of this article. This studies hope to examine and discuss existing constraints in structural framework and competitive culture in pharmaceutical drugs market.The structure of this Article is the following. In Part 1, explain the relationship of patents rights and competition policy and law, industry market structure, market players and relationship between intellectual property patent laws and competition laws. Part 2, explain anti-competitive behaviours from patent holders and challenges and implications on the violations of competition law. Part 3 recapitulates the constraints, issues and structural suggestions for workable ‘competitive culture’ in the pharmaceutical market. We hope this studies will provide further research gap for future research.