Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Costs definition

What does Costs mean? In litigation, costs are the legal fees, disbursements, court fees and VAT incurred in bringing, defending or appealing a claim, and the sums a court or tribunal may order one party to pay another for those liabilities. The concept is governed by procedural rules and case law rather than a single statutory definition: England and Wales (CPR 44–47), Northern Ireland (RCJ Ord 62), Scotland (where the equivalent term is expenses), and Ireland (Legal Services Regulation Act 2015 and the Legal Costs Adjudicators). The general approach is broadly consistent, subject to local terminology and procedure. Typical features include the discretionary rule...

Court of Appeal clarifies excessive pricing framework in CMA v Pfizer/Flynn (phenytoin sodium capsules): United Brands tests, cost-plus, comparators and economic value; CAT remittal upheld

Published by a LexisNexis Competition expert

Practice notes

ARCHIVED –this archived case hub reflects the position at the date of the judgment of 10 March 2020; it is no longer maintained.

NOTE—The Supreme Court has granted permission to appeal against the Court of Appeal’s judgment on Costs. See the timeline, commentary and related cases for further details.

Case facts

Outline

Appeal by the Competition and Markets Authority against the CAT’s ruling which quashed the CMA’s Infringement decision of 12 February 2016 that fined Pfizer Inc and Flynn Pharma (Holdings) Limited for charging unfair and excessive prices for phenytoin sodium capsules, contrary to Article 102 TFEU and Chapter II of the Competition Act 1998.

Latest developments

On 10 March 2020, the Court of Appeal delivered its judgment, rejecting the CMA’s attempt to reinstate the fines. However, it concluded that the CAT made legal errors in its assessment of the CMA’s excessive pricing decision against Pfizer Inc and Flynn Pharma (Holdings) Limited.

Parties

Appellant: Competition and Markets Authority (CMA)
Respondents: Pfizer Inc. and Pfizer Limited (together Pfizer)
Flynn Pharma Limited and Flynn Pharma (Holdings) Limited (together Flynn)

Pfizer Inc is a global pharmaceutical company headquartered in New York. It produces medicines and vaccines...

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Web page updated on 21/05/2026

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