THE SUPREME Court yesterday said the UK's competitions watchdog could be forced to cover Pfizer and Flynn Pharma's legal costs, following the collapse of its case into the two pharmaceutical firms.

The landmark ruling could see UK regulators made liable to pay the costs of those subject to failed investigations, after the Competitions and Markets Authority (CMA) argued such a decision would have a "chilling effect" on regulators enforcement activities.

The ruling comes after the CMA first brought its case against Pfizer and Flynn in 2018 over claims the firms had rigged the market by inflating the price of a widely used epilepsy drug.

In overturning a previous ruling, the Supreme Court's decision said regulators should not be shielded from paying legal costs to those at the centre of failed investigations.

A CMA spokesperson noted that the Supreme Court judgement simply "restores the position on payment of costs back to what it was in 2019".

(c) 2022 City A.M., source Newspaper