House Subcommittee Questions FTC Over Its Approval of $29.1 Billion Pharmacy Merger

Under questioning from the House Commerce, Manufacturing and Trade subcommittee, Federal Trade Commission chairwoman Edith Ramirez defended the FTC’s decision to approve the $29.1 billion merger of Express Scripts Inc. and Medco Health Solutions Inc. In April 2012, FTC approved the merger, despite concerns that the tie-up would harm competition.  Responding to concerns from the subcommittee, Ramirez said that the FTC evaluated the competition impacts of the deal and would continue to monitor concerns over potential pharmacy benefits management market consolidation.  During the questioning, the subcommittee also expressed concerns that the FTC may be overstepping its FTC Act Section 5 enforcement powers to address data security, when it regulates private companies’ data security practices.  In response, FTC commissioner Julie Brill  backed the agency’s mandate not only to ensure that companies are abiding by commitments they make to consumers through privacy policies but also through the exercise of the FTC’s unfairness jurisdiction, limited by the requirement to show harm.

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