The European Commission imposed a fine of 432 million euros on the American biotech company Illumina on Wednesday because the company completed an acquisition without European approval. The acquired Grail receives a symbolic fine.
“Companies violate our rules when they merge without our approval. Illumina and Grail deliberately did so while we were still investigating the merger,” said EU Competition Commissioner Margrethe Vestager. A fine of 432 million euros must show that the European Commission is serious.
Vestager’s services had opened an in-depth investigation into Illumina’s acquisition of Grail in July 2021 because it feared the merger would hurt competition, stifle innovation and limit choice in the rapid-detection blood test market. In the end, she would conclude that her objections were justified.
During the investigation of the European competition watchdog, the merger had to be put on hold, but Illumina and Grail paid no heed and completed the transaction later in the summer of 2021. The Commission speaks of an ‘unseen and very serious infringement’ that deserves a maximum fine of 10 percent of annual turnover. In the case of Illumina, that is 432 million euros.
Grail also played an active role in completing the merger. The Commission decided to only give this start-up in the biotech sector a symbolic fine of 1,000 euros. This is because it is the first time that the Commission has fined the acquired company.
2023-07-12 12:57:11
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