Novo Nordisk Again Violates Antimonopoly Law
OREANDA-NEWS. September 02, 2014. The FAS Commission found that “Novo Nordisk” Ltd. violated Clause 5 Part 1 Article 10 of the Federal Law “On Protection of Competition” by refusing to supply medicines without any economic or technological reasons.
Earlier FAS warned “Novo Nordisk” Ltd. to eliminate signs of violating the antimonopoly law and supply the goods to the buyer. “Novo Nordisk” considered the buyer’s application but did not supply the goods closing a warehouse five days before the expiration of the contract.
“Novo Nordisk” Ltd. refused to execute the warning and filed a lawsuit.
On 14th March 2014, Moscow Arbitration Court and on 23rd June 2014 the 9th Arbitration Appeal Court dismissed the claim of “Novo Nordisk” Ltd. and confirmed legitimacy of FAS warning.
Having studied the case circumstances in detail, the FAS Commission concluded that “Novo Nordisk” had had a possibility to supply medicines to the buyer but had failed to undertake the necessary actions to prevent the violation of the antimonopoly law.
“Novo Nordisk” could have сcorrected its conduct on the market and prevented violating the antimonopoly law. Instead, the company incurred court costs and will be forced to pay a fine for violating the antimonopoly law. It’s not the first time when “Novo Nordisk” Ltd. violated the law. For instance, in 2010 FAS found that “Novo Nordisk” Ltd. violated Clauses 5, 8 Part 1 Article 10 of the Federal Law “On Protection of Competition” by avoiding supplying medicines without any economic or technological justification and creating discriminatory conditions for potential counteragents. The administrative fine for committing the violation was 53.5 million RUB. Unfortunately, the company did not draw a lesson from first-hand experience”, pointed out the Head of FAS Department for Control over Social Sphere and trade, Timophei Nizhegorodtsev.
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