A fine of eight million was imposed for a cartel in pharmaceuticals, helped by a whistleblower for the first time
Two suppliers of expensive medications were fined for colluding to win competitions with a state health insurance company, aided by a whistleblower.
The Slovak Anti-Monopoly Office has slapped a nearly eight million euro fine on two major suppliers of pharmaceuticals, Phoenix Health Supply and Transmedic Slovakia, for colluding in government procurement processes. These companies had allegedly agreed on how to distribute contracts among themselves while compensating for any losses incurred, an arrangement that significantly undermined fair competition in the sector. This marks a significant case in Slovak enforcement history, thanks in part to information brought forward by a whistleblower who reported their illegal activities.
The case highlights the critical role of whistleblowers in exposing corrupt practices within the pharmaceutical industry. It is particularly notable as this is the first time the Slovak Anti-Monopoly Office has successfully dismantled a cartel operation based on whistleblower testimony. The involved companies, both leading players in Slovakia's pharmaceutical wholesale market, were found to be coordinating their bids in state-sponsored competitions, a practice that not only inflates drug prices but also hinders patient access to necessary treatments, especially in critical areas such as oncology.
While the fine handed down is substantial, it remains a provisional decision and may be subject to appeal by the companies involved. This incident raises broader questions about the integrity of national healthcare procurement processes and the effectiveness of regulatory authorities in combating such collusion, setting a precedent for future investigations and the protection of whistleblowers.