The Federal Trade Commission reached a proposed settlement with Surescripts in an illegal monopolization case that aims to address anticompetitive actions resulting in increased prices, hindered innovation and limited customer choices in the e-prescription market.
“The proposed order would eliminate the anticompetitive restraints Surescripts has imposed on its customers since 2010 and would create conditions that allow competition to flourish for the benefit of anyone who gets a prescription filled at a pharmacy,” FTC Bureau of Competition Director Holly Vedova said in a July 27 news release.
The FTC's proposed order would prohibit health information technology company Surescripts from engaging in exclusionary conduct and enforcing non-compete agreements with current and former employees. The order is in response to charges that Surescripts used anticompetitive tactics to monopolize two e-prescription drug markets and aims to provide immediate relief to consumers, according to the release.
The court ruling found Surescripts possesses monopoly power in e-prescribing services with a 95% "supershare," confirming the FTC's position and making clarifications on establishing monopoly power through market share and barriers to entry. The FTC's suit against Surescripts alleged the company employed illegal restraints to maintain its monopolies over the routing and eligibility e-prescribing markets, preventing customers from using competing platforms, the release reported.
The proposed order would have a 20-year term and prohibit Surescripts from engaging in the exclusionary conduct alleged in the FTC's case. It extends the same prohibitions to Surescripts' medication history services and on-demand formulary services. Specifically, the order prohibits Surescripts from imposing majority share requirements, implementing problematic provisions to limit customers' business with competitors and preventing rivals from competing in routing and eligibility, the release said.
Additionally, it bars Surescripts from discriminating against or threatening customers who refuse majority share requirements and enforces the same relief for medication history and on-demand formulary services, according to the release.
