The Commission fined five companies - Alkaloids of Australia, Alkaloids Corporation, Boehringer, Linnea, and Transo-Pharm, as a result of an antitrust investigation.
"This marks our first cartel decision in a sector of such significance, where competition plays a vital role in ensuring access to affordable medicines," said Commissioner Didier Reynders, who is responsible for competition policy.
C2 PHARMA, the sixth company involved, was exempt from fines as it voluntarily disclosed the cartel to the Commission under the leniency program - an arrangement that permits companies to reveal their involvement in a cartel and collaborate with the Commission during an investigation in exchange for a potential exemption from hefty fines or a substantial reduction thereof.
All six companies admitted their participation in the cartel and reached a settlement, as mentioned in the statement. A seventh company, Alchem, also implicated in the cartel, chose not to reach an agreement with the Commission.
The investigation, conducted by the European Commission in conjunction with Swiss and Australian competition authorities, revealed that the six companies had engaged in the exchange of commercially sensitive information. Furthermore, it was determined that there was a continuous infringement in the European Economic Area (EEA) spanning from November 1, 2005, to September 17, 2019.
During this period, these companies formed a cartel either manufacturers or distributors of N-Butylbromide Scopolamine/Hyoscine (SNBB), a crucial raw ingredient used in the production of the abdominal antispasmodic medicine Buscopan and its generic equivalents, according to the Commission.
The Commission explained that in calculating the fines for each company, it took into consideration the value of SNBB sales related to the infringement, the nature of the violation and its various components, its geographical scope, and its duration.
