OBJECTIVES: The growing costs of medicines have forced many countries to implement measures to lower the prices of originators and generics after patent expiration. Measures taken in Austria include Generic Price Linkage System, where there are strict upper limits for the prices of generics and also for originators after the entry of generics. Measures taken in Finland include Generic Substitution and Reference Pricing, where competition plays an important role. The aim of this study is to compare the effects of the measures taken in Austria and in Finland on the prices of originators and generics. METHODS: We included in the analysis ten active ingredients whose sales were high in Finland, which were reimbursable in both countries, and whose patent protection expired during the years 2010–2012. The analysis was based on time series, which covered 6 months before and 12 months after the entry of the first generic. The changes in price levels were measured in terms of wholesale prices proportioned to the number of Defined Daily Doses in the package (EUR/DDD). RESULTS: One year after generic entry, prices for originators had fallen, on average, by 46% in Austria and by 21% in Finland. Prices for generics were 66% lower in Austria and 59% lower in Finland than the prices of originators before generic entry. The mean number of generics per active ingredient was 6.3 in Austria and 5.1 in Finland.  CONCLUSIONS: The pricing system applied in Austria appears to be more efficient in lowering prices than the system used in Finland, which contradicts claims that free competition lowers generic prices more efficiently than linking them to the price of the originator. This finding may be due to the way the Finnish Reference Price System has been constructed.