A jaw-dropping penalty from the Competition Authority to Abdi İbrahim

The Competition Authority completed its investigation into Abdi İbrahim and GlaxoSmithKline. In the statement, it was stated that fines would be imposed on both companies.

Competition Authority last year, among the giant names of the pharmaceutical industry Abdi İbrahim and GlaxoSmithKline announced that it had opened an investigation into its companies. The reason for this investigation is that the parties They were in a secret agreement.

The institution today announced that he had completed the investigation. In the statement, it was stated that both companies were fined. In this context; To Abdi İbrahim İlaç Sanayi ve Ticaret Anonim Şirketi 184 million 363 thousand 976 TLIt was announced that a fine of 33 million 321 thousand 564 TL was imposed on GlaxoSmithKline İlaçları Sanayi ve Ticaret AŞ.

Statement made by the Competition Authority:

Within the scope of the investigation carried out in accordance with the Competition Board’s decision dated 09.11.2023 and numbered 23-53/1004-M; As a result of the conciliation texts sent by Abdi İbrahim İlaç Sanayi ve Ticaret Anonim Şirketi and GlaxoSmithKline İlaçları Sanayi ve Ticaret AŞ based on the interim decisions of the Board, they reached an agreement/harmonious agreement with their competitors by making gentlemen’s agreements not to employ each other’s employees in the labor market and by exchanging information sensitive to competition between competitors. 33,321,564.11 TL to GlaxoSmithKline İlaçları Sanayi ve Ticaret AŞ and 184,363,976 to Abdi İbrahim İlaç Sanayi ve Ticaret AŞ, on the grounds that they were involved in the action and thus violated Article 4 of the Law on the Protection of Competition No. 4054, It was decided to impose an administrative fine of 71 TL and to terminate the investigation carried out by the Board decision dated 09.11.2023 and numbered 23-53/1004-M with a compromise for the mentioned enterprises.

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What does Article 4 of the Law No. 4054 on the Protection of Competition say?

Article 4- Agreements between undertakings, concerted practices, and such decisions and actions of associations of undertakings that have the purpose of directly or indirectly preventing, distorting or restricting competition in a particular market for goods or services, or that have or may have the effect of doing so, are unlawful and prohibited.

These situations are, in particular:

a) Determining the purchase or sale price of goods or services, the factors that make up the price, such as cost and profit, and all kinds of purchase or sale conditions,
b) Sharing or controlling all kinds of market resources or elements by dividing the markets for goods or services,
c) Controlling the supply or demand amount of goods or services or determining them outside the market,
D) Making it difficult or restricting the activities of competing undertakings, or excluding undertakings operating in the market through boycott or other behavior, or preventing new entrants into the market,
to) Applying different conditions to persons in equal status for equal rights, obligations and acts, except for exclusive franchise,
f) Contrary to the nature of the agreement or commercial practices, requiring the purchase of another good or service together with a good or service, or making a good or service requested by buyers acting as intermediary enterprises conditional on the display of another good or service by the buyer, or Asserting conditions regarding the re-supply of goods or services,

In cases where the existence of an agreement cannot be proven, the fact that price changes in the market or the balance of supply and demand or the activity areas of the undertakings are similar to those in markets where competition is prevented, distorted or restricted constitutes a presumption that the undertakings are engaged in concerted action.

Provided that it is based on economic and rational facts, each party can avoid liability by proving that it did not act in concert.

Source :
https://www.rekabet.gov.tr/tr/Guncel/abdi-ibrahim-ilac-sanayi-ve-ticaret-anon-3bb84605c1fbee1193c90050568585c9


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